To avoid subsidies, the government should cap the price for natural monopolies at their:
A. marginal cost.
B. fixed cost.
C. average total cost.
D. average variable cost.
Answer: C
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Which statement is true?
A. There was a great deal of stagflation in the 1970s. B. We had the worst recession since World War II in the late 2000s. C. We have had twelve recessions since January, 1945. D. All of the choices are true.
Discuss the controversy surrounding affirmative action. How does this controversy illustrate the trade-off between equality and efficiency?
What will be an ideal response?
Marginal cost
A. measures how total cost changes when input prices change. B. is less than average cost when average cost is decreasing. C. measures how total cost changes when one more unit of output is produced. D. both a and b E. both b and c
If the percentage change in quantity supplied is 0%, and the percentage change in price is 5%, then the good is
A. perfectly inelastic. B. unit elastic. C. elastic. D. inelastic.