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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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?
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.