In the short run, which of the following statements is correct?
A. The marginal cost curve intersects the average variable and average fixed cost curves at
their minimum points.
B. Average variable cost declines continuously as total output is expanded.
C. Total cost will exceed variable cost.
D. If the inputs of all resources are increased by equal amounts, total output will expand by
diminishing amounts.
Answer: C
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Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of
A) a surplus at printed ticket prices. B) a shortage at printed ticket prices. C) the tournament not being televised. D) the tournament getting too much television exposure.
Which of the following was NOT a major claim of Fogel and Engerman (1974) in their work on slavery?
(a) Slavery was profitable for Southerners. (b) Slavery slowed the mechanization of the plantations. (c) Slaves were treated fairly well. (d) Slavery was efficient.
A country should export the goods in which it has an absolute advantage
a. True b. False Indicate whether the statement is true or false
Samantha holds stocks in four companies. If she adds stocks of several more companies she will decrease
a. firm specific risk and market risk. b. firm specific risk but not market risk. c. market risk but not firm specific risk. d. neither firm specific nor market risk.