Other things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of the following would happen?
A. Marginal costs and average variable costs would both rise.
B. Average fixed costs and average variable costs would rise.
C. Average fixed costs and average total costs would rise.
D. Average fixed costs would rise, but marginal costs would fall.
Answer: C
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Fogel argued that railroads were more cost effective than canals because railroads were faster and were in service all year and that using rail instead of canals would ____
a. lower freight rates on the railroads b. lower government subsidies for railroads c. lower eastern inventories of grain in the d. reduce the wheat being shipped to Europe
During the past 200 years, income per person has
a. increased in the developed countries of Western Europe and North America, but declined in the rest of the world. b. declined in the developed countries of Western Europe and North America, but increased in the rest of the world. c. increased far more rapidly in both developed and less developed countries than during the centuries prior to 1800. d. Increased far less rapidly in both developed and less developed countries than during the centuries prior to 1800.
Refer to the information above. What is the level of consumption when the level of income is 850?
A) 375 B) 425 C) 450 D) 475
Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?
a. A country with no or few domestic natural resources is destined to be poor. b. Differences in natural resources have virtually no role in explaining differences in standards of living. c. Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor, but can never have very high standards of living. d. Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.