If the marginal cost curve is below the average variable cost curve, then
A. marginal cost must be decreasing.
B. average variable costs are decreasing.
C. average variable costs are increasing.
D. average variable costs could either be increasing or decreasing.
Answer: B
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If total population is measured, where does the United States rank?
A. First B. Second C. Third D. Fourth E. Fifth
The more elastic the supply of a resource,
a. the greater is economic rent as a proportion of total earnings b. the greater is opportunity cost as a proportion of total earnings c. the fewer alternative uses the resource has d. the greater the derived demand for the resource e. the lower the derived demand for the resource
An increase in the budget deficit causes domestic interest rates
a. and investment to rise. b. to rise and investment to fall. c. to fall and investment to rise. d. and investment to fall.
The strategy for the Stackelberg Leader is
A. to take account of the effect of its own behavior on the rival firm's quantity choice. B. collusion. C. to sell a marginally higher quantity of goods than the rival. D. to sell at a marginally lower price than the rival.