If marginal costs are constant what will the average variable cost curve look like? What about the average total cost curve?
What will be an ideal response?
The average variable cost curve will coincide with the average variable cost. The average total cost curve will slope downward but will not be U-shaped.
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Assume that the Federal Reserve replaces the money stock with the interest rate as an intermediate target. Then,
a. the range for the target interest rate would be chosen to hit the inflation rate, unemployment rate, and growth rate of the economy. b. if the Treasury bill rate fell temporarily below the target range, the Open Market Desk would sell securities in the open market until the Treasury bill rate rose to the target range. c. if the Treasury bill rate rose above the target range, the Open Market Desk would purchase Treasury bills or other government securities. d. All of the above
Refer to Scenario 14.2. If each unit of output sells for $5, how many days of labor will the firm hire to maximize profit?
A) 1 B) 2 C) 3 D) 4 E) 5
Which of the following best explains why a firm in a competitive price-taker market must take the price determined in the market?
a. The short-run average total costs of firms that are price takers will be constant. b. If a price taker increased its price, consumers would buy from other suppliers. c. Firms in a price-taker market will have to advertise in order to increase sales. d. There are no good substitutes for the product supplied by a firm that is a price taker.
If voters are rational, they are more likely to vote
A. if the issues are complex. B. when they are employed. C. in small local elections. D. in large national elections.