Refer to Figure 11-5. Curve G approaches curve F because
A) marginal cost is above average variable costs.
B) fixed cost falls as capacity rises.
C) average fixed cost falls as output rises.
D) total cost falls as more and more is produced.
C
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What will be an ideal response?
If the international price of oranges is less than the domestic price of oranges in Spain, then Spain will export oranges to other countries
a. True b. False Indicate whether the statement is true or false
If perfectly competitive lawn care firms are making an economic profit, then
A) wages will be bid up until the economic profit are gone. B) the firms must be superior and will continue to make an economic profit. C) new firms will enter the industry. D) they are not equating marginal revenue to marginal cost. E) government regulation will be imposed to decrease their profit.
If an import-competing firm is the only domestic producer of a good, then a transition from autarky to free trade will ________ domestic price, ________ producer surplus, ________ consumer surplus, and ________ overall domestic national welfare
A) decrease; decrease; increase; increase B) increase; increase; increase; increase C) decrease; decrease; decrease; decrease D) increase; increase; decrease; decrease E) increase; increase; decrease; increase