Why does the AFC curve continue to decline even as the AVC and ATC curves are rising?
a. Fixed costs are not used to calculate average total costs.
b. Fixed costs are being spread over larger volumes of output.
c. Variable costs such as rent tend to decrease over time.
d. Variable costs increase whether output rises or falls.
b. Fixed costs are being spread over larger volumes of output.
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After a price floor of $23 is placed on the market in the graph shown, which area represents producer surplus?
A. B + C + D + F
B. B + E
C. B + C + D
D. B + C + E + F
People will be likely to spend a higher percentage of any additional income when _____
a. they believe that the increase is permanent b. they believe that the increase is temporary c. the increase is large d. the increase is small e. interest rates on savings accounts are rising
In Figure 2.1, Box 4 would be labeled
A. P for price. B. D for demand. C. Q* for equilibrium quantity. D. S for supply.
The voices of business and industry are less likely to influence government policy than the voices of consumers in the high-growth Asian economies
Indicate whether the statement is true or false