Suppose there is a firm that has no fixed costs. At the point where marginal cost equals average variable cost,
a. fixed cost is rising
b. marginal cost is rising
c. average total cost is rising
d. average variable cost is falling
e. there is no total cost
B
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A decrease in consumer confidence would shift the aggregate demand curve rightward
Indicate whether the statement is true or false
When the Fed injected newly made money into the economy by buying bonds, it:
A. was practicing quantitative easing. B. was trying to avoid a deflationary period similar to Japan. C. inserted over $1 trillion of new money into the economy. D. All of these statements are true.
Which of the following does not cause “hidden” or “disguised” unemployment?
A. Involuntary part time work B. Discouraged workers C. Shortened work hours D. Loss of overtime
The cost-minimizing rule is that a firm should utilize inputs such that the marginal product of an input divided by the price of the input is the same for all inputs. This is also the profit-maximizing rule because
A. they are exactly the same. B. we obtain the profit-maximizing rule by multiplying each ratio by the product price, which is the same for each input. C. we obtain the profit-maximizing rule by multiplying each ratio by the marginal revenue produced. D. the profit-maximizing rule is just the inverse of the cost-minimizing rule.