Total variable costs
A) initially increase as output increases and then decrease.
B) always decrease with output.
C) always increase with output.
D) initially decrease and then increase with output.
C) always increase with output.
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The single-price monopolist shown in the above figure could increase its economic profit if
A) it became a price discriminator. B) its costs of production decreased. C) the demand for its good increased. D) any or all the above were to occur.
The law of diminishing marginal returns describes changes in output when inputs change
Indicate whether the statement is true or false
Statistics show that China will soon overtake the United States in terms of per capita GDP
a. True b. False
Based on the given figure, the economy is initially at point A on the monetary policy reaction function (RF1) and the aggregate demand curve (AD1). The actual rate of inflation is ?' and the Federal Reserve's target inflation rate is ?*1.
If the Federal Reserve lowers its target inflation rate to ?*2, then the Federal Reserve's monetary policy reaction function will ________ and the aggregate demand curve will ________.
A. shift to RF3; shift to AD3 B. shift to RF3; shift to AD2 C. shift to RF2; shift to AD3 D. shift to RF2; shift to AD2