In the short run, if the average cost curve is shown as decreasing, it is because
A. fixed cost is spread out over larger amounts of production.
B. it becomes cheaper to produce an infinite amount of goods.
C. additional units of production are inferior.
D. variable costs increase with each additional amount of production.
Answer: A
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Refer to the figure below. What is the Nash equilibrium of this game?
A. A chooses Down, B chooses Right B. A chooses Up, B chooses Right C. A chooses Down, B chooses Left D. A chooses Up, B chooses Left
Marginal costs will begin to rise at the point where
A) fixed costs increase. B) variable costs increase. C) average variable costs increase. D) diminishing marginal product begins.
If 40 Russian rubles = $1 U.S.,
A. 1 ruble = $.025 B. 1 U.S. cent = 4 rubles C. 40 U.S. cents = 100 rubles D. $4 = 120 rubles
An advantage of set-aside programs over price support programs is that they
A. Transfer more income to farmers. B. Raise the price of agricultural production but do not lead to a surplus of output. C. Reduce the price of agricultural goods. D. Affect the demand side as well as the supply side of the farm problem.