If marginal cost exceeds average total cost in the short run, then which is likely to be true?
A. Marginal cost is less than average variable cost.
B. Average total cost is less than average variable cost.
C. Average total cost is increasing.
D. Average variable cost is decreasing.
Answer: C
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Lauren makes $150 a day as a bank clerk. She takes two days off work without pay to fly to another city to attend the concert of her favorite band. The cost of transportation and lodging for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Lauren's decision to attend the concert is
A. $600. B. $450. C. $250. D. $300.
If consumers save the entire amount of the increase in their disposable income due to a tax cut, the ________
A) tax cut will lead to a decrease in GDP B) tax cut will lead to an increase in GDP C) tax cut will lead to an increase in current account deficit D) tax cut will have no effect on GDP
A currency board
a. issues domestic currency in exchange for foreign currency at an exchange rate of its choosing. b. is responsible for the conduct of the nation's monetary policy. c. promises to continue redeeming the issued currency at a fixed rate. d. does all of the above.
An increase in the money supply is likely to decrease:
a. Prices b. Nominal income c. Money demand d. Interest rates