The long-run average cost curve may initially slope downward due to
A) decreasing average fixed costs.
B) increasing marginal returns.
C) economies of scale.
D) All of the above.
C
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Everything else held constant, if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent, then the expected return of holding RST stock ________ relative to XYZ stock and
demand for XYZ stock ________. A) rises; rises B) rises; falls C) falls; rises D) falls; falls
Consider a car dealership that advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if
A) you value the lease at least $350 per month. B) you value the lease at least $250 per month, the $3600 is a sunk cost. C) you value the lease less than $350 per month. D) you value buying a new car at $400 per month.
"Value added" is defined as:
a. the price of the product multiplied by the quantity produced. b. total sales revenue divided by the quantity produced. c. total sales revenue minus sales taxes. d. the value of total product minus raw materials costs.
The difference between disposable income and consumption spending is
A. transfer payments. B. personal taxes. C. net exports. D. personal investment. E. personal saving.