As output increases, the AVC
a. increases.
b. decreases.
c. remains the same.
d. falls and then rises.
d. falls and then rises.
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_____ refers to actions that one party in a transaction takes based on his private information and that affect the payoff to the other party
A) Negative externalities B) Moral hazard C) Positive externalities D) Bargaining
If the punishment is _________, or the likelihood of getting caught is _________, the cost associated with breaking a ban may not be high enough to change the trade-off that consumers face.
A. not severe; low B. severe; high C. severe; low D. not severe; high
To determine what a buyer would be willing to pay for a given bond, you must first ________________ by combining its face value, interest rate, maturity date, and market interest rates.
a. calculate its certificate of deposit b. ensure it is a high-yield bond c. determine the bond’s coupon rate d. compute the bond’s present value
Given the shutdown rule, what does the firm's short-run supply curve look like? It is the section of the:
A. MC curve that lies above the ATC curve. B. MC curve that lies above the AVC curve. C. AVC curve to the right of its minimum. D. ATC curve to the right of its minimum.