Luke realizes that his space taxi service is operating in the region of diminishing marginal product. As he provides more taxi service in the short run, what will happen to the marginal cost of providing the additional service?
a. It is impossible to say anything about marginal cost with the information provided.
b. Marginal cost will decrease
c. Marginal cost will increase.
d. Marginal cost will stay the same.
c
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Refer to the scenario above. What is likely to be the impact on Firm A's sales if both the firms decide to sponsor the event?
A) A 5% increase in sales B) A 2% increase in sales C) A 0% increase in sales D) A 10% increase in sales
Between Independence and the Civil War, American population growth was
(a) steady and constant. (b) rapid but wildly unstable. (c) positive and rapid. (d) heavily concentrated in the settlement in Western lands.
"Tax cuts, by providing incentives to work, save, and invest, will raise employment and lower the price level." This argument is made by the:
a. Keynesian economists. b. supply-side economists. c. classical economists. d. monetarists.
Other things equal, if more firms enter a monopolistically competitive industry:
A. the demand curves facing existing firms would shift to the right. B. the demand curves facing existing firms would shift to the left. C. the demand curves facing existing firms would become less elastic. D. losses would necessarily occur.