A linear total cost curve which passes through the origin implies that:
a. average cost is constant and marginal cost is variable.
b. average cost is variable and marginal cost is constant.
c. average and marginal costs are constant and equal.
d. need more information to answer question.
c
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Economists and others use economic theory
A. only to analyze situations in which money changes hands. B. as a partial basis for public policy recommendations. C. to confuse their enemies. D. instead of using value judgments concerning important policy issues.
A large increase in oil prices is an example of:
A. inflation inertia. B. an adverse inflation shock. C. a favorable inflation shock. D. excessive aggregate spending.
Which of the following goods has a perfectly inelastic supply?
A) insulin B) Diet Pepsi C) the original portrait of "Whistler's Mother" D) compact discs by Bush
___________ is credited with introducing the water frame in American spinning mills
a. Samuel Slater b.Oliver Evans c. Robert Fulton d. Eli Whitney