Total fixed cost (TFC):
A. varies directly with total output.
B. falls continuously as total output expands.
C. does not change as total output increases or decreases.
D. falls as the firm expands output from zero, but eventually rises.
Answer: C
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Increasing the capital available to the workforce, holding other factors constant, tends to ________ total output while ________ labor productivity.
A. decrease; increasing B. increase; decreasing C. increase; not changing D. increase; increasing
The extent to which a firm is viewed by consumers as being a monopoly depends primarily on
a. how the government defines a monopoly b. whether they believe there are close substitutes for the good it produces c. the level of profits earned by the firm d. the difference between price and marginal cost of the good it produces e. the size of the firm
The mechanism of supply and demand is
a. a fundamental tool in both microeconomics and macroeconomics. b. the only real "law" of economics. c. a fundamental tool only in microeconomics. d. a fundamental tool only in macroeconomics.
An increase in taxes shifts the
A. aggregate supply curve outward. B. aggregate demand curve outward. C. consumption schedule upward. D. consumption schedule downward.