What happens as a variable input increases while other inputs are fixed?
a. Eventually the fixed inputs will increase at a rate equal to or below the variable increases.
b. Fixed costs will rise and variable costs will fall as they are spread over larger output.
c. The average variable cost will remain equivalent to or below the average fixed cost.
d. At some point the increase will lose its effectiveness, and additions to output will decline.
d. At some point the increase will lose its effectiveness, and additions to output will decline.
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The Coase Theorem works best when who owns the property rights?
A. consumers B. government C. does not matter D. producers
Resources that are privately owned are less likely to be depleted than resources that are not privately owned
Indicate whether the statement is true or false
A person who wins a large sum of money in the state lottery is likely to
a. increase the amount of market work offered at each wage rate b. not change the amount of work offered at each wage rate c. decrease the amount of work offered at each wage rate d. substitute market work for leisure time due to the substitution effect e. substitute market work for leisure time due to the income effect
A tax raises the price received by sellers and lowers the price paid by buyers
a. True b. False Indicate whether the statement is true or false