The short-run average total cost curve is U-shaped because average fixed costs ________ and average variable costs ________ eventually as quantity produced increases.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: C
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You're buying snacks for an Econ Club meeting. You've been given $100 to spend on chips and soda. If bags of chips cost $3 each and Soda costs $1 each, how much of each can you buy?
A. 40 bags of chips and 10 sodas B. 10 bags of chips and 75 sodas C. 25 bags of chips and 25 sodas D. 30 bags of chips and 15 sodas
If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result in
A) an increase in the relative price of food in the U.S. B) an increase in the relative price of food in Japan. C) a global increase in the relative price of food. D) a decrease in the relative price of food in both countries. E) an increase in the relative price of food in both countries.
________ in the money supply creates excess ________ money, causing interest rates to ________, everything else held constant
A) A decrease; demand for; rise B) An increase; demand for; fall C) An increase; supply of; rise D) A decrease; supply of; fall
A profit-maximizing firm's demand function for labor can be found by differentiating:
a. the profit function with respect to w. b. the cost function with respect to w. c. the supply function with respect to w. d. the production function with respect to w.