Average fixed costs:
A. are a constant, regardless of quantity of output.
B. always trend downward as output increases.
C. are a vertical line.
D. always trend upward as output increases.
Answer: B
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Electric car manufacturers want to sell more electric cars at a higher price. Which of the following events would have this effect?
A) an increase in the price of gasoline. B) technological advancement in the production of electric car batteries. C) an increase in the number of manufacturers of electric cars. D) a decrease in the price of lithium, which is used in the electric car batteries.
If marginal cost exceeds average variable cost,
a. average variable cost is negative b. average variable cost is increasing c. marginal cost is greater than average total cost d. average variable cost is decreasing e. average fixed cost is increasing
If there is a recession, the Fed would most likely:
a. encourage banks to provide loans by lowering the discount rate. b. encourage banks to provide loans by raising the discount rate. c. restrict bank lending by lowering the discount rate. d. restrict bank lending by raising the discount rate. e. restrict bank lending by lowering the federal funds rate.
A firm's marginal revenue is
A) the change in total revenue that results from a one-unit increase in the quantity sold. B) total revenue minus total cost. C) the change in total revenue minus the change in total cost. D) the change in total revenue that results from an increase in the demand for the good or service. E) less than the market price for a perfectly competitive firm.