Refer to Figure 8.4. If six microwave ovens are produced, Micro Oven's average fixed costs are
A) $33.33.
B) $83.33.
C) $116.67.
D) indeterminate from this information.
B) $83.33.
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A limitation of the discount rate as a policy tool is that the initiative for its use rests with
A) commercial banks. B) consumers. C) the U.S. Treasury. D) state governments.
Does it make sense to consider the returns to scale of a production function in the short run?
A) Yes, this is an important short-run characteristic of production functions. B) Yes, returns to scale determine the diminishing marginal returns of the inputs. C) No, returns to scale is a property of the consumer's utility function. D) No, we cannot change all of the production inputs in the short run.
The behavior of the Federal Reserve concerning interest rates is called fiscal policy.
Answer the following statement true (T) or false (F)
For inferior goods, a decrease in income will cause the
A. quantity demanded to increase. B. quantity demanded to fall. C. demand to increase. D. demand to fall.