The typical average variable cost curve:
A. rises and then falls sharply.
B. slopes up and to the right.
C. slopes down and to the right.
D. is U-shaped.
Answer: D
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Suppose that once a well is dug, water flows out of it continuously without any additional effort. Customers collect their water and pay a per gallon fee when they leave the site of the well. In the short run, the competitive firm in this market
A) will not shut down because variable costs are zero. B) has no fixed costs. C) faces diminishing marginal returns. D) can act as a price setter.
Scarcity is a result of an unfair distribution of income
a. True b. False Indicate whether the statement is true or false
Which of the following would have the impact shown in the accompanying graph?
A. Precommitment policy B. Operation twist C. Quantitative easing D. Money easing
A reduction in the real exchange rate indicates that
A) foreign goods are now relatively cheaper. B) foreign goods are now relatively more expensive. C) domestic goods are now relatively more expensive. D) both A and C