Dividing the total cost of undertaking n units of an activity by n reveals the:
A. marginal cost.
B. average cost.
C. average benefit.
D. units per cost.
Answer: B
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
How are the following transactions entered into the U.S. balance of payments?
(a) The U.S. government sends $2,000 worth of food aid to Africa. (b) A U.S. firm exports $10,000 worth of goods to the United Kingdom, payable in 3 months. (c) A U.S. tourist in Amsterdam spends $200 for food and hotels.
Which of the following statements concerning perfect competition is not true?
a. Firms are price takers. b. The demand curve facing an individual firm is horizontal. c. A firm's demand curve is identical to its marginal revenue curve. d. The firms produce differentiated products. e. If a firm raises its price, it will lose all of its customers.
The most important determinant of the price elasticity of demand for a good is
A) the definition of the market for a good. B) the availability of substitutes for the good. C) the share of the good in the consumer's budget. D) whether the good is a necessity or a luxury.