At an output at which MC is greater than ATC
A) the ATC curve is downward sloping.
B) the ATC curve is upward sloping.
C) the AFC curve is upward sloping.
D) the AVC curve is downward sloping.
Answer: B
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The region of the U.S. that benefited least from and fought hardest against raising tariffs in the first half of the nineteenth century was
(a) New England. (b) the Middle Atlantic states. (c) the South. (d) the West.
Producer surplus equals total revenue minus the sum of all marginal cost
What will be an ideal response?
Which of the following statements is false?
a. The Clayton Act allows triple damages in civil lawsuits in order to encourage lawsuits against conspiring oligopolists. b. Many economists defend the practice of resale price maintenance on the grounds that it may help solve a free-rider problem. c. Most economists agree that predatory pricing is a profitable business strategy that usually preserves market power. d. The U.S. Supreme Court's view that the practice of tying usually allows a firm to extend its market power is not generally supported by economic theory.
Contractionary fiscal policy is so named because it:
A. involves a contraction of the nation's money supply. B. necessarily reduces the size of government. C. is aimed at reducing aggregate demand and thus achieving price stability. D. is expressly designed to expand real GDP.