Supply-side inflation could be caused by which of the following?
A. an increase in long-run aggregate supply
B. a decrease in aggregate demand
C. an increase in aggregate demand
D. a decrease in long-run aggregate supply
Answer: D
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If the short-run average variable cost of production for a firm is decreasing, then it follows that
A. average variable cost must be greater than marginal cost. B. marginal cost must be decreasing. C. average variable cost must be greater than average fixed cost. D. average fixed cost must be constant.
Graphically, the average productivity of labor would be illustrated by the slope of the marginal productivity curve at the relevant point
a. the slope of the total product curve at the relevant point. b. c. the negative of the slope of the marginal productivity curve at the relevant point. d. the slope of the chord connecting the origin with the relevant point on the total output curve.
Negative marginal revenue means that
a. the firm is maximizing its economic profit b. the firm is maximizing its total revenue c. total revenue is increasing at an increasing rate as output increases d. total revenue is increasing at a decreasing rate as output increases e. total revenue is decreasing as output increases
Suppose that Rihanna sells 1,000 tickets to a concerts at $480 each. If the equilibrium price is $600 per ticket for a fixed supply of 1,000 tickets, what is the value of the additional economic rent that Rihanna could earn if she charged the market
clearing price? A) $1,080,000 B) $120,000 C) $600,000 D) $480,000