Which of the following statements about marginal cost is correct?
a. If the cost to produce one more unit of output is lower than the previous average cost, then producing one more unit brings down the average.
b. Marginal cost is a calculation of the cost of one unit of output, and therefore it can have no effect on average costs.
c. As the cost per change in one unit of output increases, average costs of production decrease in an inverse relationship.
d. The cost of producing one more unit of output decreases as output grows, whereas average costs rise with output.
a. If the cost to produce one more unit of output is lower than the previous average cost, then producing one more unit brings down the average.
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The Coase Theorem explains how the ________ can come to a socially optimal solution.
A. government B. producers C. citizens D. market
Who does the government borrow from?
What will be an ideal response?
Which of the following statements is TRUE about the economic profits earned by a monopolistic competitor firm in the long run?
A) Economic profits can be positive since firms have some degree of monopoly power. B) Economic profits will be positive since the firm has a downward sloping demand curve. C) Economic profits will tend towards zero since positive profits will attract new firms into the industry. D) Economic profits can be negative since there is so much competition in the market.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.