If marginal cost is rising, then average cost must be rising.
Indicate whether the statement is true or false.
Answer: False.
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A commercial bank creates money when it does all the following except ______
A. decreases its excess reserves B. makes loans C. creates deposits D. puts cash in its ATMs
Which of the following is NOT provided in the textbook as something that might lead to the creation of a new market?
A. New laws B. New buyers C. New sellers D. New services
PriceQuantity Demanded$510$420$330$240$150Refer to the table above. Starting at a $5 price, at what price range does demand become inelastic?
A. $3-4 B. $2-3 C. $1-2 D. $4-5
An increase in the marginal factor cost of labor will
A. lead to an increase in the value of an additional worker. B. cause the value of the marginal product of labor to increase. C. lead to an increase in the quantity demanded of labor. D. induce a firm to hire fewer workers.