If a particular production process is subject to diminishing marginal returns to labor at every level of output, then at every level of output
A) AC is upward sloping.
B) MC exceeds AVC.
C) AFC is constant.
D) All of the above.
B
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Which of the following pairs of lags are typically shorter for monetary policy than for fiscal policy?
a. The recognition lag and the implementation lag b. The effectiveness lag and the decision-making lag c. The decision-making lag and the implementation lag d. The implementation lag and the effectiveness lag e. The recognition lag and the effectiveness lag
Compared to perfect competition, monopoly
A. provides less output. B. charges a higher price. C. results in higher cost (inefficient) production. D. All of these responses are correct.
The maximum welfare benefit levels in most states
A. by law are 1.5 times the poverty income threshold. B. by law must equal the poverty income threshold. C. are significantly above the poverty income threshold. D. are significantly below the poverty income threshold.
Suppose both a monopolist and a perfectly competitive firm charge a price corresponding to the quantity at the intersection of the marginal cost and marginal revenue curves. If this price is between each firm's average variable cost and average total cost curves,
A. the perfectly competitive firm will continue to operate in the short run but the monopolist will shut down. B. both firms will continue to operate in the short run. C. both firms will shut down in the short run. D. the perfectly competitive firm will continue to operate in spite of the loss but the monopolist will earn a profit.