A firm's short-run marginal cost curve is decreasing when
A) marginal product is increasing.
B) total fixed cost is decreasing.
C) average fixed cost is increasing.
D) marginal product is decreasing.
E) capacity is reached.
Ans: A) marginal product is increasing.
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The effect of a tariff or a quota is to
a. raise the price of a commodity in the exporting country above the price in an importing country. b. raise the price of a commodity in an importing country above the price in the exporting country. c. lower the price of the commodity in all countries. d. raise the price of the commodity in all countries.
An increase in the discount rate impacts the money supply because it
a. makes it more attractive for commercial banks to borrow from the Federal Reserve. b. decreases the interest yield on new issues of U.S. securities. c. reduces the incentive of commercial banks to borrow from the Federal Reserve. d. increases the Federal Reserve's earnings and, thereby, expands the money supply.
Laws that are passed that either require or forbid certain behaviors are examples of command-and-control policies
a. True b. False Indicate whether the statement is true or false
Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes. Laura sells 20 wedding cakes per month. Her monthly total revenue is $5,000 . The marginal cost of making a wedding cake is $300 . In order to maximize profits, Laura should
a. make more than 20 wedding cakes per month. b. make fewer than 20 wedding cakes per month. c. continue to make 20 wedding cakes per month. d. We do not have enough information to answer the question.