Answer the following questions true (T) or false (F)
1. As output increases, the distance between average total cost and average variable cost increases.
2. In the long run the relevant cost is total cost.
3. If the long-run average total cost curve is downward-sloping, then the firm is experiencing decreasing returns to scale.
1. FALSE
2. TRUE
3. FALSE
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The income elasticity of demand for skiing trips to Vermont is greater than one. Thus a trip to Vermont for skiing is ________ good
A) a normal B) an inferior C) a unit elastic D) a price elastic E) a price inelastic
Who receives benefits if regulation works according to social interest theory?
A) the entire economy B) cohesive interest groups C) everyone not in the cohesive interest group D) the regulators E) It is impossible to determine who benefits.
Total income in a country in 2012 is $780 billion. Total expenditure in the country
A) cannot be determined. B) is greater than $780 billion. C) is $780 billion. D) is less than $780 billion. E) is either less than or equal to $780 billion.
What are inventories? What usually happens to inventories at the beginning of a recession, and what usually happens to inventories at the beginning of an expansion?
What will be an ideal response?