At an output of 15, AVC is $20 and MC is $18. At an output of 16, AVC is $20 and MC is $22. We may conclude that at the shutdown point AVC is
A. greater than $21.
B. greater than $20.
C. less than $20.
D. less than $18.
C. less than $20.
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Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the price of cowboy hats decreases from $38 to $30
A) consumer surplus will rise by $6. B) the marginal cost of producing the third cowboy hat will fall to $30. C) producer surplus will rise from $8 to $24. D) producer surplus will fall from $22 to $6.
Which of the following is NOT an economic function of the U.S. government?
A) promoting competition B) providing public goods C) promoting price stability D) encouraging production of government-inhibited goods
An increase in aggregate demand will tend to cause which of the following?
A. a recessionary gap B. cost-push inflation C. a deflationary gap D. none of these
________ goods are rival in consumption and their benefits are excludable.
A. Social B. All C. Private D. Public