In an increasing cost industry, an increase in industry output will
A) lead to a higher market price.
B) lead to a lower market price.
C) shift each firm's average fixed cost curve down.
D) shift each firm's short run supply curve down.
Answer: A) lead to a higher market price.
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In the theory of utility, it is assumed that marginal utility:
a. increases as the consumption of a product increases. b. is always zero irrespective of any increase or decrease in consumption. c. remains constant when consumption of a product increases. d. diminishes as the consumption of a product increases. e. remains constant when the consumption of a product decreases.
In an open economy, the demand for loanable funds comes from both domestic investment and net capital outflow
a. True b. False Indicate whether the statement is true or false
In general, economists are critical of monopoly where there is (are):
A. no natural monopoly. B. a natural monopoly. C. only a few firms D. persistent economies of scale.
In a closed economy, imports equal ______.
a. GDP b. zero c. net revenue d. aggregate expenditures