The fixed cost curve:
A. is steep when output levels are low, then flattens as output increases.
B. is flatter when output levels are low, then gets steeper as output increases.
C. is a constant, flat line.
D. is a constant, vertical line.
C. is a constant, flat line.
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Use the concept of intertemporal substitution to explain how, in real business cycle models, a change in potential output causes an immediate change in actual output
What will be an ideal response?
How does monopsony power evolve? What factors might aid its continued presence?
Quotas and tariffs both serve the purpose of
A) increasing foreign trade. B) restricting foreign trade. C) causing domestic producers to lose revenues. D) lowering prices on imported goods.
Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - 0.4 [Wages - (Work expenses + Child care costs)] Suppose Shanika works 2,000 hours per year at a wage of $6 per hour, has child care expenses of $3,000 per year, and has work expenses of $900. If the state maximum welfare benefit is $11,000 per year, based on the welfare formula given, Shanika's welfare benefit will be
A. $8,100. B. $7,760. C. Zero because her income exceeds the limit. D. $2,900.