From Example 7.2, most pizza restaurants have large fixed costs and relatively low variable costs. What does this tell us about the average variable cost (AVC) of producing pizza?
A) AVC is relatively low
B) AVC is relatively high
C) AVC is high for low quantities but declines quickly
D) AVC is increasing for all quantity levels
A
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The real discount rate and the nominal discount rate differ in their treatment of
A) risk. . B) market return. C) inflation. D) expected risk.
Which of the following is emphasized by supply-side economics?
a. The impact of budget deficits on interest rates and aggregate demand. b. The impact of government spending on aggregate demand, output, and employment. c. The impact of marginal tax rates on aggregate supply. d. The impact of budget deficits on the rate of taxation in the future.
One of the more powerful forces leading to an end in economic discrimination is
a. pure competition. b. pure monopoly. c. government regulation. d. oligopolistic rivalry.
Refer to the graph shown. To maintain the price of euros at $1.20, the European Central Bank must buy:
A. Q2 euros. B. Q0 - Q2 euros. C. Q1 - Q0 euros. D. Q1 - Q2 euros.