If the marginal cost curve is below the average variable cost curve, average variable cost must be _____________.
Fill in the blank(s) with the appropriate word(s).
declining
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The United States is a creditor nation
Indicate whether the statement is true or false
An increase in the real interest rate in the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
The position of a demand curve is unaffected by changes in the price of the good
a. True b. False Indicate whether the statement is true or false
The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because
a. larger firms always have lower per-unit costs than smaller firms. b. at low levels of output, AFC will be high, while at high levels of output, MC will be high as the result of diminishing returns. c. diminishing returns will be present when output is small, and high AFC will push per-unit cost to high levels when output is large. d. diseconomies of scale will be present at both small and large output rates.