Every time we use scarce resources in one way, we give up the opportunity to use them in other ways.
Answer the following statement true (T) or false (F)
True
A cost is always involved in any activity.
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Explain how the value of marginal cost affects the values of average variable cost and average total cost and what this means for the relationship between the marginal cost curve and the average variable and total cost curves
What will be an ideal response?
In the country of Marzipana, total consumption in Year 1 was $56,000 million and in Year 2 was $60,000 million. It has been observed that each time disposable income changes in this country by $100, consumption changes by $70 . Using this information compute the change in disposable income from Year 1 to Year 2
a. Disposable income increased by $2,800 million in Year 2. b. Disposable income decreased by $2,000 million in Year 2. c. Disposable income increased by $2,000 million in Year 2. d. Disposable income increased by $4,500 million in Year 2. e. Disposable income decreased by $2,600 million in Year 2.
There may be a different criterion used for the long run, but for the short run, a firm should shut down production if price is less than
a. ATC b. AR c. MC d. AVC e. AFC
In a laissez-faire system, the price mechanism dictates the production planning decisions
a. True b. False Indicate whether the statement is true or false