Given the production function and total cost function shown in Chapter 4, as production increases, total costs

A. decrease constantly.
B. decrease for a while and then increase.
C. increase for a while and then decrease.
D. increase constantly.


Answer: D

Economics

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A. increase; increases B. increase; decreases C. decrease; decreases D. decrease; increases

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If the government wanted a tax to not burden consumers much, it would want to tax an industry with:

a. elastic supply and demand curves. b. inelastic supply and demand curves. c. inelastic supply and elastic demand. d. elastic supply and inelastic demand.

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Suppose the growth rate of Carolina is 5 percent. According to the rule of 70, it will take _____ years for the economy to double in size

a. 20 b. 14 c. 30 d. 40

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Administered prices are most likely to occur

A. when a cartel dominates the industry. B. under cutthroat competition. C. under monopolistic competition. D. in any of these competitive situations.

Economics