The average variable cost curve will shift upward if:
a) there is a technological advance.
b) the price of the variable input decreases.
c) the price of the variable input increases.
d) there is an increase in fixed cost.
e) the price of output increases.
Ans: c) the price of the variable input increases.
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Mention the reasons behind the de-integration of American Steel producers
Public choice theory indicates that tariffs, quotas, and other trade restrictions are primarily the result of the
a. political clout of foreigners. b. political clout of domestic consumers. c. political power of the special interest groups. d. attractiveness of sound economic policies to elected political officials.
In the long run, a monopolistically competitive firm:
a. will earn normal profits. b. will earn excess profits. c. will earn no profits. d. will produce where marginal cost equals price.
The reason individual homeowners usually do not hire a private contractor to fill the potholes on their street is because:
A. it costs too much. B. the value to the neighborhood exceeds the cost of repair. C. others who use the street will be free riders. D. there are negative externalities associated with the repair.