When marginal cost is greater than average cost, average cost decreases as output increases
Indicate whether the statement is true or false
FALSE
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The above figure represents the demand and marginal revenue curves for Sue's Seafood, a seller of fresh fish
a. Over what range of output is demand elastic? b. Over what range of output is demand inelastic? c. What price maximizes total revenue? d. What is the price elasticity of demand at the revenue maximizing price?
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at 20ยข per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p
If the long-run supply curve is horizontal, then how many firms will this industry sustain in the long run? A) 0 B) 100 C) 50,000 D) There is not enough information to answer.
One problem with changing the required reserve ratio is that
a. the policy must be kept secret from the public in order to have any effect b. the results are unpredictable c. the changes are usually not effective d. banks will often ignore the changes e. it takes too much time for these changes to affect the economy
If the inflation rate is 2% and the real interest rate is 1%, then the nominal interest rate is around
A. 1%. B. 3%. C. 2%. D. -1%.