When MC is falling, ATC and AVC
A. must be rising.
B. must be falling.
C. may be falling or rising.
D. will remain constant.
B. must be falling.
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Why is the marginal benefit of cleaning up pollution downward sloping?
A. The benefit can only be seen if you clean large amounts of pollution so there is little marginal benefit otherwise. B. At first cleaning pollution makes a big difference but there are diminishing marginal returns for subsequent efforts. C. At first you see small effects to cleaning but then see larger differences because of diminishing marginal returns. D. Cleaning up pollution continues to cost the citizens in the area more and more.
Why are inputs not included in the calculation of the gross domestic product?
What will be an ideal response?
"Economic profits are less than or at most equal to accounting profits." Do you agree or disagree? Explain
What will be an ideal response?
If both market demand and supply decrease simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. increase; increase b. indeterminate; decrease c. decrease; indeterminate d. decrease; decrease