Refer to Figure 5.2, which shows a family of average cost curves. The average fixed cost curve is represented by:
A. Curve 1.
B. Curve 2.
C. Curve 3.
D. the vertical sum of curve 1 and curve 2.
Answer: C
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The crowding out effect of expansionary fiscal policy when the money supply is not increased is confirmed by
A) the Keynesian econometric models only. B) the Monetarist models only. C) both the monetarist and Keynesian econometric models. D) neither the Monetarist nor the Keynesian econometric models.
Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price.
Select whether the statement is true or false. A. True B. False
Scarcity is a situation in which resources are limited in quantity and can be used in different ways.
Indicate whether the statement is true or false.
(Consider This) An unprofitable motel will stay open in the short run if:
A. price (average nightly room rate) exceeds average variable cost. B. marginal revenue exceeds marginal cost. C. price (average nightly room rate) exceeds average fixed cost. D. marginal revenue exceeds price.