The U-shape of the average variable, average total, and marginal cost curves reflects
A) increasing marginal returns.
B) decreasing marginal returns.
C) both increasing and decreasing marginal returns.
D) decreasing marginal product.
E) the point that implicit costs become a smaller fraction of total cost as output increases.
C
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A monopolist has equated marginal revenue to zero. The firm has:
A) maximized profit. B) maximized revenue. C) minimized cost. D) minimized profit.
Refer to Scenario 10.7. How many ink pads will be produced to maximize revenue?
A) 0 B) 250 C) 300 D) 500 E) none of the above
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. Which of the following statements is true?
A. Tom has an opportunity cost of $41,000. B. Tom earns an accounting profit of $35,000. C. Tom experiences an economic loss of $6000. D. All of these are true.
Overall, rapid economic growth between 1981 and 2012 has ______ the global poverty rate from __________________.
A. increased; below 20 percent to above 44 percent B. decreased; above 30 percent to below 15 percent C. decreased; above 44 percent to 12.7 percent D. increased; below 12.7 percent to above 25 percent