Which of the following is correct?
The following table shows the relationship between output and costs for two firms in the short run.
A. B has lower fixed costs than A
B. A has higher unit costs than B at low levels of output
C. A has greater marginal costs than B at each level of output
D. B starts experiencing diminishing marginal returns with the second unit of output
C. A has greater marginal costs than B at each level of output
You might also like to view...
Between 1850 and 1950 the productivity of the average American farm worker
A. declined. B. remained about the same. C. doubled. D. quadrupled.
Social preferences chosen from behind the veil of ignorance are likely to value efficient outcomes and are likely to treat individuals symmetrically. ?
Answer the following statement true (T) or false (F)
Refer to Figure 16-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase government spending. B) decrease government spending. C) increase oil prices. D) lower interest rates. E) increase taxes.
If the deficit is financed by selling bonds to the ________, the money supply will ________, increasing aggregate demand, and leading to a rise in the price level
A) public; rise B) public; fall C) central bank; rise D) central bank; fall