One of the major reasons for the U-shaped average total cost curve is the fact that
A) there are increasing returns from labor regardless of the number of workers employed.
B) there eventually are decreasing returns from labor as more workers are employed.
C) prices fall as output increases.
D) the average fixed cost increases as more output is produced.
E) the variable cost decreases as more output is produced.
B
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The efficient quantity of a public good occurs when the marginal cost of providing that good equals the sum of the marginal benefits to all individuals
Indicate whether the statement is true or false
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
What will be an ideal response?
Refer to Figure 14.2. A movement from point b to point d could be caused by a(n):
A. decrease in government spending. B. increase in the price of oil. C. decrease in taxes. D. increase in short-run aggregate supply.
Leading indicators of activity in the economy:
A) New building permits B) Current industrial production C) Labor cost per unit or output D) None of the above