Answer the following statements true (T) or false (F)
1. In a mature industry, all firms operate with constant returns to scale.
2. On a cost/output graph, the average fixed cost is constructed as a straight horizontal line.
3. Marginal cost crosses the average variable cost and the average total cost at their lowest points.
4. The average fixed cost remains constant even in the long run.
5. Marginal cost is related inversely to the marginal product.
1. FALSE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
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The United States
A) has never had a significant problem with corruption. B) currently is one of the most corrupt countries. C) currently ranks among the least corrupt countries. D) had a significant problem with corruption in the 1930s.
The result of effective screening and signaling can be:
A. more transactions take place. B. surplus is increased for buyer and/or seller. C. more information is credibly shared. D. All of these statements are true.
Technically speaking, if price > AVC, then
a. TR > TC b. profit is positive c. TR > TVC d. profit is negative e. the firm should shut down
Economists once believed utility could be measured. This school of thought, known as utilitarianism, was developed by the English philosopher
A. Henri Leconte. B. Bernard Mandeville. C. Jeremy Bentham. D. John Lennon.