A firm's long-run average cost curve is derived by adding together its short-run average total cost curves
Indicate whether the statement is true or false
FALSE
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Expected wealth is a weighted average in which the weights are
A) average utilities. B) marginal utilities. C) total utilities. D) probabilities.
The annual Great Sofa Round-up is a collaborative event between Colorado State University and the City of Fort Collins aims to help students and neighbors get rid of unwanted furniture, while giving people in need access to inexpensive sofas
Suppose on the day of the Round-up, your friends take their couches to the main parking lot on campus where the Round-up is held. Raj will not sell his couch for less than $30, Emily will not sell her couch for less than $50, Nara will not sell her couch for less than $20, Sergio just wants to get rid of his couch and he is willing to give it away for free. At the Round-up, potential buyers think that all the couches available are basically the same and they are willing to buy a couch for $25. Who will sell their couch and what is the value of the market producer surplus? A) Nara and Sergio; $30 B) Nara and Sergio; $5 C) Raj and Emily; $30 D) Emily, Nara, and Sergio; $25
Paying money in order to guarantee a certain level of compensation should an adverse event occur is
A. risk aversion. B. risk smoothing. C. risk pooling. D. risk rating.
The quantity theory of money assumes that
a. velocity varies inversely with interest rates. b. if velocity equals six, the Fed can increase nominal GDP by 30 percent if it increases the money supply by 5 percent. c. changes in the money supply affect output but not prices. d. changes in velocity are so small that velocity can be considered constant.