"All average costs have a U-shaped curve." Do you agree or disagree? Explain why?
What will be an ideal response?
Disagree. It is true that the average variable cost curve and average total cost curve are U-shaped, but the average fixed cost curve is continuously downward sloping. Because fixed costs do not vary, an increase in output only reduces average fixed costs.
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Entry into the information technology industry becomes more attractive the more firms there are because of the increased availability of already trained workers. Given this trend, it appears that information technology is
a. an increasing-cost industry. b. a constant-cost industry. c. a decreasing-cost industry. d. a government subsidized industry.
Elected government officials seem biased toward favoring
A) the national interest. B) the global interest. C) well organized, special interest groups. D) policies that are in the long-run interest of economists.
Which is the broadest price index reported in the United States?
A) the CPI-U B) the GDP deflator C) the consumer price index D) the producer price index
The market for ice cream is a
a. monopolistic market. b. highly competitive market. c. highly organized market. d. Both b and c are correct.