As output increases, average fixed costs:
A. Increase
B. Decrease
C. Remain constant
D. First increase and then decrease
B. Decrease
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Consider a market with inverse demand p = 100 – 2Q. Firms have no fixed cost and constant marginal cost c
a. Derive the firms' outputs and profits when this market is served by Cournot duopolists. b. How do outputs and profits vary with c? Specifically, use calculus to find the derivative of the output of each firm and profit of each firm with respect to c. c. Suppose the firm's also have a fixed cost of F in addition to the marginal cost c. How does F alter the best response functions and NE? Explain in words. (For technical reasons, assume that both firms still produce a positive level of output in equilibrium)
In this economic growth and production possibilities curve, how much more food can a country produce on the new curve compared to the old curve if it produces no housing on either one?
a. 7 units
b. 10 units
c. 40 units
d. 80 units
One reason to require licensing of attorneys is that
A. legal services are a private good. B. legal services generate positive externalities. C. consumers of legal services lack perfect information. D. legal services are used primarily by the wealthy.
Natural rate of unemployment is the normal rate of unemployment toward which the economy gravitates.
Answer the following statement true (T) or false (F)