The marginal cost curve intersects the short-run average total cost curve where:
A. marginal cost is minimized in the short run.
B. average variable costs are minimized in the short run.
C. average total costs are minimized in the short run.
D. average variable costs are maximized in the short run.
Answer: C
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The current price of wheat is $10 per bushel, but the equilibrium price of wheat is $5 per bushel. As a result, a. the quantity supplied of wheat exceeds the quantity demanded of wheat at $10 per bushel. b. the equilibrium quantity of wheat exceeds the quantity demanded at the $10 price
c. there is a surplus of wheat at the $10 price. d. All of the above are correct.
To reduce the chance of investigations and orders to cease production, businesses should
A. adhere to government regulations. B. specialize. C. purchase the most up-to-date technology available. D. lobby members of Congress.
The law of increasing opportunity costs indicates that:
A. the sum of all costs cannot rise above the market price of a product. B. to produce more of one good, society must sacrifice larger and larger amounts of alternative goods. C. resources are perfectly mobile except for transportation costs. D. if the prices of all the resources involved in the production of goods increase, the cost of producing those goods will increase at the same rate.
Does the stock market resemble a perfectly competitive market?
A. Yes, the stock market does resemble a perfectly competitive market. B. No, because there are not enough buyers and sellers in the stock market. C. No, because the buyers and sellers in the market lack access to reliable information about prices in the market. D. No, because the products (stocks) in the market are not standardized well enough.