As table manufacturing company produces more tables, the average total cost of each table produced increases. This is because:
a. Total fixed costs are decreasing as more tables are produced
b. There is economies of scale
c. There is diseconomies of scale
d. Total variable cost is decreasing as more clubs are produced.
c
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If the MPC is 0.5, then a $10 million increase in disposable income will increase consumption by
A) $15 million B) $5 million. C) $50 million. D) $2 million.
If income decreases, the budget constraint will shift in but the slope will remain the same
a. True b. False
Refer to the above table. Assume the consumer spends his entire income. The price of hamburger is $1, the price of a movie is $6, and the consumer has $15. What is the consumer's optimum?
the government may reduce government spending or increase taxes in order to eliminate
What will be an ideal response?