If average total cost is decreasing as more and more units are produced, then marginal cost must be
A. constant.
B. below average total cost.
C. rising.
D. negative.
Answer: B
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Which of the following will most likely occur during the expansionary phase of a business cycle?
a. Real GDP declines, and the rate of unemployment increases. b. Real GDP declines, and the rate of inflation is unchanged. c. Real GDP increases, and rate of unemployment falls. d. Real GDP is unchanged, and the rate of inflation is unchanged.
The negative of the slope of the isoquant indicates the ___________________________
Fill in the blank(s) with the appropriate word(s).
Monopolistic firms do not have supply curves because
A) monopolists get to choose their price-quantity combination along the demand curve. B) monopolists face a given market price. C) their marginal costs cannot be calculated. D) they are not constrained by the marginal costs of production. E) their output is a fixed quantity.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.