When the marginal cost is higher than the average total cost,
A. the average fixed cost must exceed the average variable cost.
B. the average variable cost must also be higher than the average total cost.
C. the higher additional value causes the average to rise.
D. the higher additional value causes the average to fall.
Answer: C
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The specialization of labor
a. leads to a reduction in unemployment b. means that less equipment will be employed when labor and capital are substitutes in production c. expands the output a society can produce d. decreases the costs to the firm of coordinating activities e. effectively separates labor from management
Fran runs a doughnut shop in a tiny 3-person town. The accompanying table shows the quantity demand by the three townspeople at various prices.Price Per DoughnutQuantity Demandedby AlQuantity Demandedby BettyQuantity Demandedby Carol10 cents104625 cents92535 cents71550 cents504When the price of a doughnut is 50 cents, what is the market demand for doughnuts?
A. 9 doughnuts B. 31 doughnuts C. 20 doughnuts D. 5 doughnuts
How is it possible for the economy to have an inflationary gap?
A. Equilibrium is at a GDP level below full employment. B. Equilibrium is at a GDP level equal to full employment. C. Equilibrium is at a GDP level above full employment. D. GDP is rising at full employment. E. GDP is falling at full employment.
On a linear demand curve, demand is ________ at the middle of the demand curve than it is at small quantities.
A. more elastic B. less elastic C. equally elastic D. There is insufficient information in the question.