If the average variable cost curve is above the marginal cost curve, then
A) marginal costs must be decreasing.
B) average variable costs must be increasing.
C) marginal costs must be increasing.
D) marginal costs can be either increasing or decreasing.
D) marginal costs can be either increasing or decreasing.
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The price elasticity of demand is measured as
A) the ratio of the typical consumer's quantity demanded to the entire quantity demanded in the market. B) the percentage change in quantity demanded divided by the percentage change in price. C) the number of purchases divided by the price of the product. D) price divided by quantity. E) quantity divided by price.
The demand curve facing Company ABC is perfectly elastic. What is its marginal revenue?
A. Equal to the average revenue B. Less than the price C. Higher than the price D. Higher than the average revenue
The text points out that since the 1970s, which of the following regions of the United States became a "population magnet?"
a. Midwest b. Northeast c. South d. West e. North
Which of the following describes a change that the Federal Reserve made in response to the financial crisis of 2007-2009?
A) The Fed extended the lender of last resort function to institutions other than banks. B) The Fed narrowed the scope of its open market operations, choosing to limit it to only buying Treasury securities from banks. C) The Fed discontinued its term auction facility (TAF) program. D) all of the above