When a firm increased its output by one unit, its AFC decreased. This is an indication that
A) the law of diminishing returns has taken effect.
B) MC < AFC.
C) AVC < AFC.
D) the firm is spreading out its total fixed cost.
D
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The statement, "My iPhone is worth $300" represents money's function as
A) a standard of deferred payment. B) a unit of account. C) a store of value. D) a medium of exchange.
Which of the following is NOT an obstacle to economic development?
A) lack of entrepreneurship B) political instability C) corruption D) a central bank
A less elastic demand for a good could result from
a. strong supply-side reactions b. an increased number of available substitutes c. lower consumer incomes d. a longer time horizon e. a shorter time horizon
If aggregate supply is vertical, what role does aggregate demand play in determining output? In determining the price level?
What will be an ideal response?