As a firm increases its output in the short run, average fixed cost
a. rises steadily
b. falls and then rises
c. falls steadily
d. rises and then falls
e. remains unchanged
C
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Which of the following statements does not follow from the median voter model?
a. Party platforms tend to converge to the median. b. The farther a candidate is away from the median voter, the more support she will have. c. Third parties generally cannot win elections. d. Political candidates tend to be quite similar to one another.
Which of the following domestically produced items is not included in GDP?
a. a bottle of shampoo b. a hairdryer c. a haircut d. All of the above are included in GDP.
In his famous article published in an economics journal in 1958, A.W. Phillips
a. used data for the United States to show a negative relationship between the rate of change of the U.S. consumer price index and the U.S. unemployment rate. b. used data for the United States to show a negative relationship between the rate of change of wages in the U.S. and the U.S. unemployment rate. c. used data for the United Kingdom to show a negative relationship between the rate of change of the U.K. consumer price index and the U.K. unemployment rate. d. used data for the United Kingdom to show a negative relationship between the rate of change of wages in the U.K. and the U.K. unemployment rate.
Suppose that market demand for a good is Q = 480 - 2p. The marginal cost is MC = 2Q. Calculate the deadweight loss resulting from a monopoly in this market
What will be an ideal response?