Which of the following reflects the correct relationship between average total cost (ATC) and marginal cost (MC)?
a. When MC > ATC; ATC is falling.
b. When ATC is minimum; ATC < MC.
c. When MC < ATC; ATC is falling.
d. When MC < ATC; ATC is constant.
e. When ATC < MC; MC is falling.
c
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If firms have to spend money on creating and protecting their monopoly power, they're going to buy:
A. no monopoly power. B. more monopoly power than if it were free. C. less monopoly power than if it were free. D. the same monopoly power as if it were free.
Suppose the consumption equation is represented by the following: C = 250 + .75YD. The multiplier in this economy is
A) .25. B) .75. C) 1. D) 4. E) 5.
With the full implementation of the Single European Act, the EU became a(n)
A) common market. B) free trade area. C) customs union. D) economic union.
Which of the following models has as its central idea that workers and firms have rational expectations?
A) the monetarist model B) the new classical model C) the real business cycle model D) the new Keynesian model