When the production of a good involves several inputs, an increase in the cost of one input will usually cause total costs to
A) rise more than in proportion.
B) rise less than in proportion.
C) remain unchanged.
D) rise by the exact amount of the input price increase.
B
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Suppose a country has a larger increase in debt in 2014 than it had in 2013 . Then other things the same,
a. the supply of loanable funds shifts rightward and the interest rate falls. b. the supply of loanable funds shifts leftward and the interest rate rises. c. the demand for loanable funds shifts leftward and the interest rate falls. d. the demand for loanable funds shifts rightward and the interest rate rises.
A monopolist's marginal cost is less than the price it charges.
Answer the following statement true (T) or false (F)
The Social Security System of 1935 was flawed from the beginning. It left old-age pensions in the control of the states. Two examples include workers' and unemployment compensation
Indicate whether the statement is true or false
A firm is currently producing at the point where MC = MR. The situation for the firm at this point is P = $5, Q = 100, ATC = $6, AVC = $4.50. What do you recommend this firm do?
A) Increase production above the current output rate, because MC = MR at this rate of output. B) Continue to produce the current output rate, because P > AVC. C) Shut down, because AVC > P. D) Shut down, because ATC > P.