Given the production function and total cost function shown in Chapter 4, as production increases, marginal costs
A. increase for a while and then decrease.
B. decrease for a while and then increase.
C. decrease constantly.
D. increase constantly.
Answer: B
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Of the in-kind programs, food stamps have the highest total annual cost
Indicate whether the statement is true or false
A monopolistically competitive firm is currently earning a positive economic profit. If other firms enter the market, we would expect that the added competition will cause this firm to adjust its output such that it
a. will operate closer to its efficient scale. b. will operate further from its efficient scale. c. will no longer be at its efficient scale. d. might move either closer to or further from its efficient scale.
Exhibit 9-4 Demand and cost curves for a monopolist
?
As shown in Exhibit 9-4, in order to maximize its profit (or minimize its loss), how much output should the monopoly produce?
A. 2 units per hour. B. 4 units per hour. C. 6 units per hour. D. 8 units per hour.
Explain why it was necessary to pass the Clayton Act when the Sherman Act had already addressed the antitrust issue.
What will be an ideal response?