Total variable costs will initially increase and then begin to decrease as output increases.
Answer the following statement true (T) or false (F)
False
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In an experiment that employed the dictator game, economists at Cornell University gave student "allocators" the option of dividing $20 in only two ways (a) $18 for themselves and $2 to another student, or (b) $10 for themselves and $10 to anoth
student. What was one result from this experiment? A) Most allocators chose to give themselves $18 and $2 to the other students. B) A majority of the female allocators chose option (a); a majority of the male allocators chose option (b). C) Most of the allocators apparently valued acting fairly. D) Most of the students who were not allocators did not like having someone else make decisions for them.
The level of output at which marginal revenue equals zero is also the level of output at which a. total revenue is zero
b. profit is maximized. c. total revenue is maximized. d. total revenue is declining.
When a price ceiling is set below the equilibrium price,
a. the quantity demanded will exceed quantity supplied. b. the quantity supplied will exceed the quantity demanded. c. the quantity supplied will equal the quantity demanded. d. the equilibrium price will fall.
Which of the following shifts aggregate demand to the right?
a. Congress reduces purchases of new weapons systems. b. The Fed buys bonds in the open market. c. The price level falls. d. Net exports fall.