Marginal analysis requires that business people who make production decisions always
a. know what average fixed costs are
b. remember what has happened most recently
c. remain forward looking
d. continue producing
e. remain optimistic
C
You might also like to view...
Which of these options best reflects Jim’s opportunity cost of operating his own business?
A. The total amount of money he spends to obtain capital equipment B. The value of Jim’s managerial skills that are used to run the business C. The cost of hiring his laborers D. All of the responses are correct.
During an economic boom
A) aggregate demand exceeds aggregate supply. B) potential output exceeds quantity demanded. C) actual output exceeds potential output. D) potential output exceeds actual output.
When a surplus of rice occurs,
A) the price of rice rises. B) the price of rice falls. C) there is a balance between the forces of supply and demand. D) the quantity demanded is greater than quantity supplied at the current price. E) the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus.
Which of the following would be consistent with the notion of a competitive market process, but would be inconsistent with the notion of perfect competition?
A) Cost-plus-markup pricing B) Freedom of entry C) Price taking behavior D) Large numbers of buyers and sellers E) All of the above.