Suppose you have the following values for a short-run production process: Q = 20, VC = 100, FC = 600 and MC = 40. Given this, we know that the
A. marginal cost curve must be decreasing.
B. marginal cost curve must be increasing.
C. average cost curve must be increasing.
D. average cost curve must be decreasing.
Answer: C
You might also like to view...
Public universities, by charging tuition ________ the marginal cost of education, ________ the number of students
A) below; decrease B) below; increase C) above; decrease D) above; increase
If U.S. quotas on imported sugar were eliminated,
A. The world price of sugar would rise. B. The supply of sugar in the United States would shift to the right and sugar prices would fall. C. The demand for sugar in the United States would shift to the left and prices would fall. D. The supply of sugar in the United States would shift to the left and prices would rise.
At present, the majority of a nation's official reserve transactions are done by using foreign exchange assets instead of gold.
Answer the following statement true (T) or false (F)
The figure below represents the U.S. market for steel imports from Korea. The Korean government provides an export subsidy of $25 per ton, and Korean firms use the subsidy to reduce their export price to the United States to $375 per ton.
Suppose the United States now imposes a countervailing duty on its steel imports from Korea to offset the impact of the subsidy provided by the Korean government on its steel exports. The change in U.S. national well-being due to the imposition of this duty is
A. +$3.75 billion. B. -$4.125 billion. C. +$3.375 billion. D. -$375 million.