For a linear and upward sloping supply curve, when the consumer has to pay a positive price for the good, the variable cost to the consumer is a
A. four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the demand curve.
B. four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the supply curve.
C. rectangle.
D. triangle.
Answer: B
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If the consumption function is C = 25 + 0.9y and income increases by $100, then autonomous consumption spending will be
A) $10. B) $25. C) $90. D) $115.
The purchase of more than ten percent of the shares of a foreign company is known as a(n)
A) World Bank investment. B) portfolio investment. C) foreign direct investment. D) International Monetary Fund (IMF) investment.
In the above figure, a trough is at point ________ and a peak is at point ________
A) a; b B) b; c C) b; a D) d; c
A profit-maximizing, monopolistically competitive car wash washes 40 cars per day, and its total cost $200 and currently makes an economic profit of $280. In the long run, everything else equal, the
A. car wash will charge more than $12 per wash. B. car wash will wash more than 50 cars per day. C. car wash will need to hire new workers to wash more cars. D. car wash will wash less than 40 cars per day.