Why does marginal cost eventually rise as output increases?
What will be an ideal response?
Marginal cost eventually rises as output increases because of diminishing returns. If each additional unit of a variable input adds less and less to total output, it must require more of that variable input to produce each additional unit of output. This means that each additional unit of output must cost more to produce.
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Which of the following statements about the FDIC is untrue?
a. The FDIC conducts bank audits and examinations. b. The FDIC helps prevent bank failures. c. The FDIC is owned by member banks. d. The FDIC provides demand deposit insurance for participating banks. e. The FDIC was created in 1933.
In the last decade, health care spending in the U.S. nearly doubled
a. True b. False Indicate whether the statement is true or false
Vertical equity refers to the idea that
A. people with greater ability to pay should pay more. B. people who are situated differently should pay differently but in a manner deemed fair by society. C. people who are situated equally should pay equally. D. the people who derive the benefits from services should be the ones who pay for the services, provided they have the ability to pay.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.