Which of the following statements is correct?
A. Average variable cost reaches its minimum when average product equals its maximum.
B. Average fixed costs are constant.
C. Average variable costs always exceed average total costs.
D. Average fixed costs are always less than average variable costs.
Answer: A
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A consumer possesses five pounds of bananas and values their total utility at $2.14. If one additional pound is acquired and marginal utility is 11 cents, total utility will
A. rise to $2.25. B. fall to $2.03. C. stay the same. D. fall to $2.11.
Refer to Figure 19-11. The graph above depicts supply and demand for British pounds during a trading day. At a fixed exchange rate of $2.00 per pound, the pound is ________ versus the dollar
A ________ of the pound would correct the fundamental disequilibrium that exists in this market. A) overvalued; devaluation B) overvalued; revaluation C) undervalued; devaluation D) undervalued; revaluation
Which statement best describes the growth rate of adult male real wages between 1820-1860 in the U.S.?
a. The growth rate was about the same as it was in pre-Revolutionary U.S. b. The growth rate was negative. c. The growth rate was more than 5 percent per year. d. The growth rate was 1.2-1.6 percent per year.
The outcome of the Stackelberg model is
A) a Nash equilibrium. B) the same as the Cournot outcome. C) that the follower earns zero profit. D) that the follower cannot be on its best-response curve.