Average variable cost for an information product would
A. increase constantly as quantity increases.
B. first decrease and then increase as quantity increases.
C. remain constant as quantity increases.
D. decrease constantly as quantity increases.
Answer: C
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The marginal product of a factor of production
A) is equal to the ratio of the amount of that factor of production to the amount of output produced. B) is equal to the amount of additional output that can be produced with one additional unit of each factor input. C) is equal to the amount of additional output that can be produced with one additional unit of that factor input, holding constant the quantities of the other factor inputs. D) always exceeds the average product of that factor input, holding constant the quantities of the other factor inputs.
A rational individual would rather receive $5,000 today than receive $6,000 in one year if the applicable nominal interest rate was 10%
a. True b. False Indicate whether the statement is true or false
Which of the following is a normative statement?
A. A decrease in price leads to an increase in quantity consumed. B. Incomes grow more rapidly in high-tax states than low-tax states. C. People would be better off if government expenditures were higher. D. People will buy less butter at $1.50 per pound than they will at $1 per pound.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.