When the short-run marginal cost curve is upward-sloping,
A. Diminishing returns occurs with greater output.
B. There are diseconomies of scale.
C. The average total cost curve is upward-sloping.
D. The average total cost curve is above the marginal cost curve.
Answer: A
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To maximize profits, a perfectly competitive firm should produce until:
A. average total cost is minimized. B. marginal cost is equal to price. C. per unit profits are maximized. D. price is greater than average total cost.
Trade-offs arising from limited resources give rise to:
a. rational self-interest b. opportunity costs c. unlimited wants d. scarce resources
All of the following countries come close to the free market benchmark except
A) Canada. B) North Korea. C) Germany. D) Singapore.
The substitution effect of a wage rate decrease suggests that
A. individuals will supply less work. B. individuals will consume less leisure. C. individuals will supply more work and consume less leisure. D. individuals will supply more work.