If producing just one more tube of toothpaste makes Crest's average total cost fall, the marginal cost of that tube of toothpaste is
a. less than one
b. greater than the average total cost of the previous tubes
c. greater than the average variable cost of the previous tubes
d. less than the average total cost of the previous tubes
e. less than the marginal cost of the previous tube
D
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A flexible exchange rate is an exchange rate whose value:
A. reflects the comparative advantage of the home country versus other foreign countries. B. is established annually by the International Monetary Fund. C. varies according to supply and demand for the currency in the foreign exchange market. D. is determined by the law of one price.
The government's ability to coerce can enhance economic efficiency by:
A) restraining self-interest. B) preventing resources from going to their most valued uses. C) eliminating income inequality. D) correcting market failures.
An industry in which one firm can achieve economies of scale over the entire range of market supply is a
A. Natural monopoly. B. Perfectly competitive market. C. Kinked demand curve oligopoly. D. Contestable market.
The operational goals the Fed uses for its monetary policy objectives are
A) the demand for reserves and the supply of reserves. B) the core inflation rate and the output ga