Given the total cost function TC = 2,000 + 2Q, when output is 1,000 units average total cost is ________ and total fixed cost is ________.
A. $2; $2
B. $4; $2
C. $4,000; $2,000
D. $4; $2,000
Answer: D
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U.S. net export spending rises when
A) the inflation rate is higher in the United States relative to other countries. B) the value of the U.S. dollar increases relative to other currencies. C) the price level in the United States rises relative to the price level in other countries. D) the growth rate of U.S. GDP is slower than the growth rate of GDP in other countries.
Property rights uncertainty will usually cause
a. lower levels of investment spending. b. lower levels of real interest rates. c. higher levels of investment spending. d. higher levels of real interest rates.
Token money is money whose face value exceeds its cost of production
Indicate whether the statement is true or false
Duopoly pricing, grim-trigger strategy, and tit-for-tat all promote cartel pricing by:
A. penalizing the underpricer. B. making underpricing impossible. C. increasing the chance of an underpricer being caught by the rest of the cartel. D. making entry impossible.