The table above gives the cost schedule for The X Firm. The data show that The X Firm's ________ curve is ________
A) ATC; U-shaped because the firm fixed costs are spread over larger amounts of output and the firm experiences decreasing marginal returns
B) AFC; U-shaped because the firm spreads its fixed costs over larger and large amounts of output
C) AVC; always declining because costs are divided across ever-increasing amounts of output
D) MC; U-shaped because explicit costs exceed implicit costs
E) ATC; U-shaped because output increases as costs increase
A
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What is the capital accumulation equation used by Solow?
What will be an ideal response?
Full employment exists when
A) there is only frictional and structural unemployment. B) the economy is at the natural unemployment rate. C) there is no cyclical unemployment. D) All of the above answers are correct.
Let the TC curve be given by the equation TC(Q) = 5 + Q. The ATC curve can be expressed as
A. Q. B. (5/Q) + 1. C. (1/Q) + 5. D. 5.
Refer to the graph showing the supply of books. A shift from S1 to S0 would most likely occur for what reason?
A. An increase in the cost of producing books B. A decrease in taxes levied on producers of books C. An increase in the number of suppliers in the market D. An increase in the price of books