If marginal cost is less than average variable cost,
A. average variable cost is falling.
B. average variable cost is constant.
C. average variable cost is rising.
D. there is no way to determine if average variable cost is falling, constant, or rising.
A. average variable cost is falling.
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When tastes are quasilinear, the sole reason for the deadweight loss from a per-unit tax is that output falls under the tax.
Answer the following statement true (T) or false (F)
Suppose that the price of a TV is $200 and he price of an MP3 player is $50. What is the opportunity cost of a TV (in terms of MP3 players), and what is the opportunity cost of an MP3 player (in terms of TVs)?
What will be an ideal response?
A scatterplot is
A) a graph highlighting leads and lags. B) a graph with one series on each axis. C) a graph of one series against time. D) a graph of two series against time.
Consider a market that is initially in equilibrium. If we observe that both price and quantity increased, which of the following could have occurred?
a. both supply and demand decreased but the dominant change was the decrease in demand b. supply decreased c. demand decreased d. supply decreased and demand increased but the dominant change was the increasein demand e. supply increased and demand decreased