How does marginal cost change as output increases (a) initially and (b) eventually?
What will be an ideal response?
At small outputs, marginal cost decreases as output increases because of greater specialization and the division of labor, but as output increases further, marginal cost eventually increases because of the law of diminishing returns.
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a. True b. False Indicate whether the statement is true or false
Microsoft has been accused of violating an antitrust law pertaining to bundling.
Answer the following statement true (T) or false (F)
If the Canadian nominal exchange rate does not change, but prices rise faster abroad than in Canada, then the Canadian real exchange rate
a. does not change. b. rises. c. declines. d. None of the above is necessarily correct.
If the CPI is now 325, by what percent did the price level rise since the base year?
Fill in the blank(s) with the appropriate word(s).