How is it possible for marginal cost to equal to the slope of either the total variable cost function or the total cost function?
What will be an ideal response?
The reason is that the total cost function is simply shifted up by the amount of total fixed costs from total variable costs. Since the slopes of both functions are the same it doesn't matter which one is used to calculate marginal cost.
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In 2002 mortgage rates fell and mortgage lending increased. Which of the following could explain both of these changes?
a. The demand for loanable funds shifted rightward. b. The demand for loanable funds shifted leftward. c. The supply of loanable funds shifted rightward. d. The supply of loanable funds shifted leftward.
The authors argue that the best way to think of competition is
What will be an ideal response?
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. Most OLED TVs sold in the United States are imported from Asia. If the United States government reduces the number of OLED TVs that can be imported into the United States, ceteris paribus, what would happen?
A. The price of OLED TVs would decrease, and the price of streaming movies would increase. B. The price of OLED TVs and the price of streaming movies would increase. C. The price of OLED TVs and the price of streaming movies would decrease. D. The price of OLED TVs would increase, and the price of streaming movies would decrease.