The table below shows cost data for a perfectly competitive firm.OutputAverage Variable CostAverage Total CostMarginal Cost0---22.5027.502.542.0014.501.562.0010.332.082.138.382.5102.307.303.0122.506.673.5143.006.576.0164.007.1311.0The firm will produce output in the short run only if the market price is at least equal to
A. $6.00.
B. $3.00.
C. $2.00.
D. $3.50.
Answer: C
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Inflation is a tax because as the government ________ the quantity of money, the price level ________, and the purchasing power of households' money ________
A) does not change; rises; increases B) increases; rises; increases C) decreases; falls; decreases D) increases; rises; decreases E) decreases; rises; decreases
Refer to the information provided in Figure 6.13 below to answer the question(s) that follow.
Figure 6.13Refer to Figure 6.13. Assume Megan has two products available, pizza and hamburgers. Megan must be compensated with more hamburgers as she gives up more pizzas. The curve in Panel ________ represents her indifference curve.
A. A B. B C. C D. D
In our consumption function, when disposable income is zero, consumption is
A) a. B) -cT. C) cT. D) -a.
All of the following are reasons a government might choose to protect monopoly rights in an industry except:
A. because it is in the public's interest to do so. B. to encourage innovation. C. to increase consumer surplus beyond what is achieved through competition. D. to benefit insiders.