Which of the following is true about the relationships among various cost curves?
a. When MC exceeds ATC, ATC must be rising.
b. When MC exceeds ATC, ATC could be rising or falling.
c. When ATC is falling, MC must exceed ATC.
d. When TC is rising, MC must exceed TC.
e. TC falls when AFC falls.
A
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If the price of milk was $2.50 a gallon and it is now $3.25 a gallon, what is the percentage change in price?
A) 13 percent B) 30 percent C) 75 percent D) 77 percent
If the equilibrium price of aspirins is $2.50 and a price ceiling is imposed at $3.00, the eventual result after market adjustment will be a(n):
a. surplus. b. shortage. c. accumulation of inventories. d. equilibrium.
If the demand curve for economics textbooks shifts to the left, then the value of the marginal product of labor for economics textbook authors will
a. rise. b. fall. c. remain unchanged. d. rise or fall; either is possible.
Propose that you work for Taco Bell and you advertise during American Idol. Their rating is 19. This is equal to 21.3 million TV's. American Idol charges $700,000 for a 30-second ad. If a meal contribution at Taco Bell is $0.60, how many purchases are required to break even for the ad costs?
a. 1,454,598 b. 700,000 c. 420,000 d. 1,116,667