Which of the following is TRUE for a firm in the long run?
A) Variable costs will initially increase and then decrease.
B) The law of diminishing marginal product holds.
C) All costs are variable costs.
D) Variable costs will equal marginal cost at all output levels.
Answer: C
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When a demand schedule is drawn as a graph,
A. price is measured on the vertical axis. B. quantity is measured on the horizontal axis. C. the resulting curve has a negative slope. D. the other variables (besides price and quantity) are held constant. E. All of these responses are correct.
Can actual real GDP exceed potential GDP?
What will be an ideal response?
The above figure represents the market for professional minor-league baseball umpires
a) If umpires are offered $90 a game, what is the quantity of umpires supplied? b) If umpires are offered $90 a game, is there a surplus or shortage of games umpired? What does the shortage or surplus equal? c) What is the equilibrium wage rate and quantity of umpires?
Refer to Figure 2-9. What is the opportunity cost of producing 1 snow cone in Iceland?
A) 2/3 of a popsicle B) 3/4 of a popsicle C) 1 1/2 popsicles D) 180 popsicles