The Total Cost Function in the book
A. is U-shaped.
B. is shaped as an upside down U.
C. begins by sharply rising, flattens out, then sharply rises again.
D. is an up-ward sloping straight line.
Answer: C
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A monopolist will operate at the quantity where: a. MR = MC and charge a price equal to marginal revenue
b. MR = MC and charge a price equal to average variable cost. c. MR = MC and charge a price corresponding to demand at that level. d. MR = MC and charge a price corresponding to average total cost at that level.
During inflationary periods
a. all prices rise at the rate of inflation. b. real wages must necessarily decline. c. some prices may fall. d. relative prices do not change.
As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker
a. True b. False Indicate whether the statement is true or false
Productivity is the
a. key determinant of living standards, and growth in productivity is the key determinant of growth in living standards. b. key determinant of living standards, but growth in productivity is not the key determinant of growth in living standards. c. not the key determinant of living standards, but growth in productivity is the key determinant of growth in living standards. d. not the key determinant of living standards, and growth in productivity is not the key determinant of growth in living standards.