A short-run total cost function, TC = 100 + 32Q - 4Q2 + 0.4Q3, indicates the existence of
A) a linear total cost curve.
B) a constant average variable cost curve.
C) a U-shaped average variable cost curve.
D) a constant marginal cost curve.
C
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If the Federal Reserve conducts open market ________, the money supply ________, shifting the LM curve to the left, everything else held constant
A) purchases; decreases B) sales; decreases C) purchases; increases D) sales; increases
When aggregate economic activity is increasing, the economy is said to be in
A) an expansion. B) a contraction. C) a peak. D) a turning point.
Answer the following statement(s) true (T) or false (F)
1. Marginal willingness to pay rises as more is consumed. 2. More consumers create a smoother market demand curve. 3. Marginal benefits are benefits consumers receive from consuming as much of a product as possible. 4. A rise in price increases consumer surplus. 5. Producer surplus measures the net gains in economic well-being received by sellers.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000Table 16.4Table 16.4 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms were to voluntarily trade pollution permits, how many permits would be swapped?
A. 0 B. 1 C. 2 D. 3