If a firm is operating beyond the minimum point of its ATC curve, then marginal cost is
A. greater than ATC and rising.
B. greater than ATC and falling.
C. less than ATC and rising.
D. less than ATC and falling.
A. greater than ATC and rising.
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Explain how and why economic events in the U.S. affected the economies of Thailand, South Korea, and Indonesia and vice-versa
A decrease in government spending
a. increases the interest rate and so investment spending increases. b. increases the interest rate and so decreases investment spending decreases. c. decreases the interest rate and so investment spending increases. d. decreases the interest rate and so investment spending decreases.
Over the past several decades, U.S. firms have faced more competition from overseas firms. Does this have any impact on the market power of U.S. oligopoly firms?
A) no, because domestic firms in oligopoly markets are always so dominant that overseas producers have little or no impact on those markets B) no, because the United States government has effectively blocked all imports that might compete with domestic firms in oligopoly industries C) Yes, competition from overseas firms can substantially limit domestic firms' market power. D) There is no way to know.
Which of the following changes shifts the AD curve up and to the right?
A. A decrease in the future marginal productivity of capital B. An increase in income taxes C. A rise in the nominal money supply D. An increase in the risk on nonmonetary assets