If marginal cost is rising, what must be happening?
a. Average variable cost must be falling.
b. Marginal product must be falling.
c. Marginal product must be rising.
d. Average fixed cost must be rising.
Ans: b. Marginal product must be falling.
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The "law of demand" means that the demand for any scarce good
A) is completely elastic. B) cannot be completely inelastic. C) must be inelastic. D) is only a short-run demand. E) cannot be elastic.
The most common type of investment in human capital is
A) having more children per family. B) the migration of labor in search of better jobs. C) expanded years of schooling. D) improved health care and maintenance.
An economic boom in one country usually causes a recession in other countries
a. True b. False Indicate whether the statement is true or false
A firm that is operating at peak efficiency is
A. making a profit in the short run. B. taking a loss in the short run. C. operating at the minimum point of its ATC curve. D. taking a loss in the long run.