Given the production function and total cost function shown in Chapter 4, as production increases, average fixed costs
A. decrease for a while and then increase.
B. decrease constantly.
C. increase for a while and then decrease.
D. increase constantly.
Answer: B
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Which of the following statements is consistent with the law of supply?
a. An increase in the quantity supplied of buns will result in a decrease in the price of buns. b. An increase in the quantity supplied of buns will result in an increase in the price of buns. c. An increase in the price of buns will result in a decrease in the quantity supplied of buns. d. An increase in the price of buns will result in an increase in the quantity supplied of buns.
Under free banking, banks are regulated by the Federal Reserve
Indicate whether the statement is true or false
Which of the following is NOT considered a measure of firm conduct?
A. Lerner index of pricing behavior B. Research and development measures C. Dansby-Willig index D. Advertising measures
In an increasing cost industry, an increase in industry output will
A) lead to a higher market price. B) lead to a lower market price. C) shift each firm's average fixed cost curve down. D) shift each firm's short run supply curve down.