The shape of the marginal cost curve reflects the

A. Law of diminishing marginal utility.
B. Competitiveness of the firm.
C. Law of demand.
D. Law of diminishing returns.


Answer: D

Economics

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If the natural monopoly shown in the figure above is unregulated, then it will charge a price of

A) $2. B) $4. C) $5. D) $6.

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Organizations that transform resources into products are known as

A. households. B. factors. C. entrepreneurs. D. firms.

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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.

A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease

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An offer is the right but not the obligation to buy or sell foreign currency.

a. true b. false

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