Which of the following statements about cost curves is always true?
a. ATC decreases as output increases.
b. AFC increases as output increases.
c. AFC lies above AVC.
d. ATC lies above AVC.
e. MC lies below ATC.
D
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In the text, when the Nick Rudd Ice Company starts as a monopoly and then finally faces competition from a new entering ice company, its
a. price falls, its economic profit falls, but its output increases b. price falls, its economic profit falls, and its ATC falls c. price falls, its economic profit falls, and it faces a more elastic demand curve d. price increases, its economic profit falls, and it faces a less elastic demand curve e. ATC falls, its economic profit falls, and it faces a less elastic demand curve
Which of the following would increase the incentive of healthcare consumers to economize and help reduce the future growth of healthcare prices in the United States?
a. an increase in the share of healthcare costs paid for either directly or from personal medical savings accounts b. subsidies that would encourage consumers to purchase low co-payment insurance plans c. a new government program that would cover the cost of prescription drugs purchased by all healthcare consumers d. a reduction in the eligibility age for the coverage of Medicare from 65 to 55 years of age
If a natural monopoly faces a relatively inelastic consumer demand over the range of the production, it will have an incentive to:
A. sell more. B. advertise more. C. charge a low price. D. charge a high price.
If a country is a net importer of a good, domestic suppliers will supply ________ of that good after it opens itself to international trade.
A. the same amount B. none C. less D. more