Describe the relationship between average total cost and marginal cost
If marginal cost (MC) is greater than average total cost (ATC), then ATC will increase. If MC is less than ATC, then ATC will decrease. If MC equals ATC, then ATC is unchanged. The minimum of ATC curve will intersect with the MC curve.
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Increases in real GDP would overstate the increase in the well-being of a country over time if, over that time period, the
A) price level increased. B) amount of pollution decreased. C) crime rate decreased. D) average hours worked per week increased.
Existing loopholes erode the progressivity of the U.S. tax system
a. True b. False Indicate whether the statement is true or false
Speculators differ from hedgers in the sense that:
A. speculators are hedgers, there isn't any difference. B. speculators do not like risk. C. hedgers seek to transfer risk. D. speculators seek to transfer risk.
Figure 6.9 depicts a hypothetical fish market with a horizontal supply curve. The consumer surplus at the initial equilibrium is shown by:
A. Triangle A. B. Triangle A + Rectangle B. C. Triangle A + Rectangle B + Triangle C. D. Triangle A + Rectangle B + Rectangle D.