An increase in a consumer's income will increase the Marginal Rate of Transformation
Indicate whether the statement is true or false
False. In increase in income will result in a parallel shift of the budget constraint, leaving the slope (MRT) unchanged.
You might also like to view...
The total cost curve:
A. is the sum of the variable cost curve and fixed cost curve. B. is parallel to the variable cost curve. C. is always above the variable cost curve. D. All of these are true.
If you were asked to draw a graph that showed the total fixed costs (vertical axis) for various levels of output (horizontal axis), you would draw a line/curve that
a. increased with a slope equal to the average fixed cost b. decreased with a slope equal to the average fixed cost c. increases for a while and then decreases d. decreases for a while and then increases e. had a slope of zero
Consider demand curve D in Figure 5-2. Between points F and G, the price elasticity of demand is
Figure 5-2
a.
1
b.
0.5
c.
2
d.
0.2
e.
none of these
For a hotdog vendor, the hotdog stand represents his
A. diseconomies of scale. B. fixed input. C. variable input. D. none of these.