Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9, and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5 . Given the above information,
a. the marginal cost of the third unit is greater than the marginal cost of the first unit.
b. the marginal cost of the fourth unit is the same as the marginal cost of the
second unit.
c. the average variable cost of four units is the same as for three units.
d. both (b) and (c) are correct.
d
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Policies taken to move the economy closer to potential output
A) must necessarily be contractionary policies. B) are lagging policies or automatic policies. C) are called stabilization policies. D) must necessarily be expansionary policies.
Expected utility theory predicts that individuals will fully insure in actuarily fair markets so long as their tastes are state-independent. How might adverse selection result in some individuals under-insuring?
What will be an ideal response?
Panel data
A) is also called longitudinal data. B) is the same as time series data. C) studies a group of people at a point in time. D) typically uses control and treatment groups.
A superior level of technology is an important reason the productivity of workers in rich countries is high.
Answer the following statement true (T) or false (F)