When the factor market is purely competitive, the firm's average expenditure curve for a factor of production is
A) upward sloping and to the right of the marginal expenditure curve.
B) downward sloping and to the right of the marginal expenditure curve.
C) identical to the marginal expenditure curve.
D) downward sloping and to the left of the marginal expenditure curve.
C
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What is a normal good?
a. A good whose demand increases when income decreases b. A good whose demand decreases when income decreases c. A good whose demand increases when price increases d. Both B&C
The television network newscaster reports that the national inflation rate the past year equaled 4 percent. This report would be of particular interest to a
A. microeconomist. B. normative economist. C. macroeconomist. D. social science economist.
When a firm produces a product that creates external costs
A) the firm produces a level of output larger than would be produced without the external cost. B) the firm produces a level of output smaller than would be produced without the external cost. C) the firm produces a level of output which would be the same as it would produce without the external cost. D) the market provides the efficient level of output even with the existence of the external cost.
As you move up the production possibility frontier, the absolute value of the marginal rate of transformation
A. initially decreases, then increases. B. increases. C. initially increases, then decreases. D. decreases.