Which of the following is true about average fixed cost?
a. Average fixed cost has a U-shape, and marginal cost crosses average fixed cost at its minimum point.
b. Average fixed cost does not vary as output increases.
c. Average fixed cost is the difference between marginal cost and average total cost.
d. Average fixed cost is total fixed cost divided by the quantity of output produced, and it declines steadily as output increases.
d
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According to the quantity theory of money, if the growth rate of money supply is 6% and the growth rate of real GDP is 9%, then the growth rate of nominal GDP in the economy will be:
A) 9%. B) 6%. C) 3%. D) 15%.
Screening and monitoring are costly activities. Why is it a bad idea to impose these costs on borrowers?
What will be an ideal response?
The Coase theorem applies to cases where _____
a. transactions costs are high b. transactions costs are obvious c. transactions costs are zero d. transactions costs are difficult to figure out
Which of the following would be included as investment in the GDP accounts?
a. the government buys goods from another country b. someone buys stock in an American company c. a firm increases its capital stock d. All of the above are correct.