A firm that would experience higher average total cost by increasing production is operating with excess capacity
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose the government has declared beer to be an illegal substance and has imposed equal penalties on any person caught buying a beer and on any person caught selling a beer
Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer
Under a gold standard in which one dollar could be turned in to the U.S
Treasury and exchanged for 1/20th of an ounce of gold and one German mark could be exchanged for 1/100th of an ounce of gold, an exchange rate of ________ marks to the dollar would stimulate a flow of gold from the United States to Germany. A) 7 B) 6 C) 5 D) 4
A catfish farmer will shut down production when
A. He is losing money. B. The best he can do is break even. C. Price falls below AVC. D. Total revenue falls below total costs.
Cuba is a command economy that suffered decline in economic growth because of a cut in support from the former Soviet Union when it collapsed. As a consequence, Cuba:
A. moved along its existing production possibilities curve. B. went to a point inside its production possibilities curve. C. experienced a shift inward in its production possibilities curve. D. experienced a shift outward in its production possibilities curve.