The shutdown point occurs at the level of output for which the ________ is at its minimum
A) marginal cost
B) average variable cost
C) average fixed cost
D) total cost
B
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If a 15 percent reduction in the price of electricity per kilowatt hour has no impact on the total electricity consumption, we can infer that in the short run, the demand for electricity is _____
a. perfectly inelastic b. perfectly elastic c. unit-elastic d. relatively inelastic e. relatively elastic
If the market demand and the market price for a product increase, then the reaction of companies that manufacture this product
A. will be dependent on the prevailing tax system. B. will be dependent on the government regulatory mission. C. will depend on whether or not the organization is attuned to market incentives. D. will be identical.
All of the following are components of aggregate demand EXCEPT
A) consumption spending. B) government purchases. C) the level of technology. D) net foreign spending on domestic production.
Draw a graph of a production possibilities curve with consumption goods and capital goods that displays the law of increasing opportunity costs. What do points on, inside and outside the curve represent? What does a rightward shift of the curve represent? How is economic growth expressed in terms of the production possibilities model?
What will be an ideal response?