In the derivation of AVC, to find its minimum, you need
A. The flattest slope on the TC.
B. the minimum-slope ray out of the origin to the A.
C. the minimum-slope ray out of the origin to the TVC.
D. the minimum-slope ray out of the origin to the TC.
Answer: C
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The Great Depression is still the subject of controversy, including the question(s) of
(a) what caused the initial downturn. (b) why the economy contracted for so long (1929 to 1932) and why it contracted so much (real GNP fell about 30%). (c) whether government policy helped or hindered the recovery attempt. (d) all of the above.
If the economy is on the aggregate supply curve but to the right of the aggregate demand curve, which of the following will be the first market force to lead the economy toward an equilibrium?
a. At the current output level, prices will be too low and firms will increase their prices. b. At the current price level, output will be too low, inventories will diminish, and firms will increase their production. c. At the current output level, prices will be too low and firms will lower their prices. d. At the current price level, output will be too high and so prices will drop so that output will drop. e. At the current price level, output will be too high, inventories will pile up and firms will cut back on their production.
In the perfectly competitive market, all firms in the market are assumed to be producing:
A. identical products. B. differentiated products. C. products that are heavily advertised. D. complementary products.
Use the following diagram for the corn market to answer the question below.
There will be a surplus of 8,000 bushels at the price of
A. $5 per bushel. B. $4 per bushel. C. $3 per bushel. D. $2 per bushel