If the short-run average variable cost of production for a firm is decreasing, then it follows that:
A. Average variable cost must be above average fixed cost
B. Marginal cost must be below average variable cost
C. Average fixed cost must be constant
D. Marginal cost must be decreasing
B. Marginal cost must be below average variable cost
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We infer the distribution of income from the distribution of abilities
Indicate whether the statement is true or false
Why do airlines tend to lower ticket prices in the winter?
a. Supply is relatively variable, and a drop in demand lowers equilibrium price. b. Demand is relatively variable, and a drop in supply lowers equilibrium price. c. A drop in both supply and demand lowers equilibrium price. d. Supply is relatively fixed, and a drop in demand lowers equilibrium price. e. Demand is relatively fixed, and a drop in supply lowers equilibrium price.
According to the income-expenditure approach, ________ reduce consumption and other elements of aggregate expenditures, resulting in a ________ in real GDP demanded. Thus the aggregate demand curve is ________
a. lower prices; decrease; upward-sloping b. higher prices; increase; downward-sloping c. higher prices; decrease; downward-sloping d. higher prices; increase; upward-sloping
Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.
Figure 6.3Refer to Figure 6.3. Molly's budget constraint is AC. Molly can purchase
A. all of the points along BD. B. none of the points along AD. C. all of the points along AB. D. none of the points along AC.