Fixed cost is:
A. any cost that does not change when the firm changes its output.
B. usually zero in the short run.
C. the cost of producing one more unit of capital, say, machinery.
D. average cost multiplied by the firm's output.
Answer: A
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Dumping occurs when a foreign firm ________
A) pollutes international waters B) disposes of waste materials in other countries C) sells inferior output to foreigners D) sells its exports at a lower price than its cost of production
Using the above figure, at which price is there neither excess quantity demanded nor excess quantity supplied?
A) P1 B) P2 C) P3 D) none of these
Any factor that increases resource availability causes a(n)
a. increase in AD b. decrease in AD c. increase in AS d. decrease in AS e. movement to the right along the existing AS curve
The key assumption for the general multiple regression model is that all factors in the unobserved error term be correlated with the explanatory variables.
Answer the following statement true (T) or false (F)