When the price of a normal good decreases, the substitution effect causes the quantity
a. true
b. false
b. false
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A rising short-run average variable cost of production for a firm indicates that
A. marginal cost is below average variable cost. B. average fixed cost is constant. C. marginal cost is above average variable cost. D. average total cost is at its maximum.
Refer to above Table 2-1. What is the level of National Income?
A) 2630 B) 2420 C) 2660 D) 2430
Decreasing returns to scale
A) indicate that an increase in all inputs by some proportion will result in a decrease in output. B) must always occur at some point in the production process. C) are directly related to the law of diminishing returns. D) All of the above are true. E) None of the above is true.
In a monopolistically competitive scenario, as more firms enter into the industry, the long run demand curve for most firms will tend to become: a. more inelastic. b. vertical
c. horizontal. d. more elastic.