If a restaurant was a natural monopoly, dividing the restaurant equally into two separate restaurants would
A) increase total revenue. B) make marginal revenue less elastic.
C) decrease marginal cost. D) raise average total cost.
D
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If the price is below the equilibrium price,
A) there is a surplus. B) there is a shortage. C) the supply curve will shift rightward. D) the supply curve will shift leftward. E) the demand curve will shift leftward.
An investment tax credit effectively ________ the user cost of capital, and thus ________ gross investment
A) lowers, raises B) lowers, lowers C) raises, raises D) raises, lowers
According to the circular flow of income and output, saving causes
A) total output to fall. B) consumption expenditures and total output to fall. C) consumption expenditures to fall short of total output. D) investment spending to fall.
Total utility can be determined by: a. summing the marginal utilities of each unit of a good consumed
b. multiplying the marginal utility of the last unit consumed by the number of units consumed. c. multiplying the marginal utility of the first unit consumed by the number of units consumed. d. multiplying the price of the good times the number of units consumed.