If the marginal cost of producing the fifth unit of output is higher than the marginal cost of producing the fourth unit of output, then at five units of output, average total cost must be rising
a. True
b. False
Indicate whether the statement is true or false
False
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Which of these changes is likely to be witnessed by a monopolistically competitive firm in the long run if it incurs a loss in the short run? a. The demand curve faced by it will become horizontal. b. The market price of its product will increase
c. Its average cost of production will decrease. d. Its marginal cost of production will decrease.
A binding minimum wage causes the quantity of labor demanded to exceed the quantity of labor supplied
a. True b. False Indicate whether the statement is true or false
The portion of deposits that banks need to hold at the Central Bank is:
(a) The required reserve ratio; (b) The discount rate; (c) The open market operation; (d) The interest rate.
Refer to the data. Which of the following is correct?
Answer the question on the basis of the following demand schedule:
A. Although the slope of the demand curve is constant, price elasticity declines as we move
from high to low price ranges.
B. Although the slope of the demand curve is constant, price elasticity increases as we move
from high to low price ranges.
C. Although the demand curve is convex to the origin, price elasticity of demand is constant
throughout.
D. A steep slope means demand is inelastic; a flat slope means demand is elastic.