If ATC is declining, MC
A. must be below ATC.
B. may be below ATC.
C. must be above ATC.
D. may be above ATC.
A. must be below ATC.
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The fraction of deposits that banks are required by law to hold and not lend out are called its
A) required reserves. B) net worth. C) excess reserves. D) reserves.
Imports ________ society's total surplus because of the ________ in price and ________ in consumption
A) increase; rise; increase B) increase; rise; decrease C) decrease; fall; increase D) decrease; fall; decrease E) increase; fall; increase
A rational consumer will always shift a dollar from a good for which the marginal-utility- to-price ratio is lower to one for which the marginal-utility-to-price ratio is higher
Indicate whether the statement is true or false
In order to maximize profit, a firm that produces its output in two plants will allocate total output between the two plants so that
A. marginal revenue for the firm is equal to the sum of the plants' marginal costs. B. marginal cost for the firm is equal to the sum of the plants' marginal costs. C. marginal cost is equal for the two plants. D. all of the above