The least-cost way of producing a particular rate of output is represented by a point of tangency between a short-run average cost curve and the
a. total cost curve
b. short-run average total cost curve
c. average variable cost curve
d. long-run average cost curve
e. marginal cost curve
D
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Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective, a. a smaller quantity of the good is exchanged. b. a smaller quantity of the good is demanded. c. a larger quantity of the good is supplied
d. the price rises above the previous equilibrium.
What is a problem with anti-trust laws involving restrictive practices?
a. The practices are not always illegal. b. So many firms engage in the practices, it is hard to prosecute all the firms. c. The practices do not cause prices to increase in all cases. d. What practices are illegal is clearly understood.
The relationship that tells us how much a person intends to spend at various levels of income is
A. the expenditure function. B. the autonomous spending function. C. the consumption function. D. the income function.
The MR = MC rule is used to analyze:
A) only monopoly profit maximization. B) only perfect competition profit maximization. C) both monopoly and perfect competition profit maximization. D) This rule is not used to analyze profit.