Suppose you know that at the current level of production average total cost equals marginal cost, then you know that it is also true that:
A. fixed costs are zero.
B. average fixed costs are increasing.
C. average total cost will decrease if production is increased.
D. average total cost is minimized at the current level of output.
Answer: D
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Use the following graph for a competitive market to answer the question below
A price ceiling of $25 per unit will result in
A. a surplus of 200 units. B. the market staying at the equilibrium quantity of 150. C. a shortage of 200 units. D. a shortage of 150 units.
Which of the following questions is a macroeconomic issue?
A) How many more pounds of cookies will a consumer purchase if the price of cookies decreases? B) What effect would a cure for Mad Cow Disease have on the market for beef? C) What is the future growth prospect for an economy? D) How many workers should the owner of a business hire?
What are the five steps by which economists arrive at a useful economic model?
What will be an ideal response?
Which of the following changes shifts the SRAS curve up?
A) An increase in the labor force B) An increase in firms' costs C) A decrease in government purchases D) An increase in the money supply