If marginal cost is below average total cost, then average total cost
a. is constant.
b. is falling.
c. is rising.
d. may rise or fall depending on the size of fixed costs.
b
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In a proportional tax system, ________
A) the average tax rate faced by an individual exceeds the marginal tax rate B) the marginal tax rate faced by an individual exceeds the average tax rate C) the average tax rate equals the marginal tax rate D) the marginal tax rate faced by all households are equal
Members of the Federal Reserve Board of Governors:
A. are appointed to 4-year terms. B. are confirmed by the House of Representatives. C. frequently need to deal with political pressures. D. are members of the Federal Open Market Committee.
Which of the following statements is correct?
A. TC = TFC - TVC B. TC = average physical product - marginal physical product C. TC = TFC + TVC D. TC = average product + marginal product
Which of the following is NOT a restriction the government imposes to keep potential entrants out of a market?
A. licensing of exclusive ownership of such a vital resources B. subsidizing imported goods C. compliance with government safety regulations D. certificate of convenience