As output increases
A) the difference between average total cost and average variable cost decreases.
B) marginal cost increases continuously.
C) average variable cost becomes smaller and smaller.
D) the difference between average total cost and average variable cost becomes greater and greater.
A
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Suppose the price of X increases by 10 percent while the quantity demanded of Y does not change. We would conclude that
A) the two goods are substitutes, but the cross elasticity of demand is not large. B) the two goods are complements, but the cross elasticity of demand is not large. C) the two goods are perfect substitutes. D) the two goods are not related.
Transferable pollution rights would allow firms to move into an area that is already as polluted as allowed by EPA standards
a. True b. False Indicate whether the statement is true or false
Elasticity of demand is another way to measure slope
a. True b. False Indicate whether the statement is true or false
Our capital account balance in 2009 was a
A. surplus of about $500 billion. B. surplus of about $400 billion. C. deficit of about $500 billion. D. deficit of about $700 billion.