The marginal cost of action choice X:
A. measures the additional cost of a small change in X.
B. tends to decrease as X increases.
C. measures the cost that a decision maker has already incurred by pursuing activity X.
D. is minimized at the best level of activity X.
A. measures the additional cost of a small change in X.
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Ordinarily the Fed lends money only to banks, but during the Great Recession of 2007-2009 the Fed extended its lender-of-last-resort role to other financial institutions. These institutions included
A) securities dealers. B) investment banks. C) high-quality corporations. D) all of the above
Bundle A is worse than bundle B, and bundle C is an average of bundles A and B. Then our usual assumptions about tastes imply that bundle B is at least as good as bundle C.
Answer the following statement true (T) or false (F)
For a monopoly, marginal revenue is less than price because
A) the demand for the firm's output is downward sloping. B) the firm has no supply curve. C) the firm can sell all of its output at any price. D) the demand for the firm's output is perfectly elastic.
Which of the following is an example of a produced factor of production?
a. a plant in which automobiles are assembled b. skills that people accumulate in high school and college c. skills that people accumulate through experience in the workplace d. All of the above are correct.