The average fixed cost curve
a. always declines with increased levels of output.
b. always rises with increased levels of output.
c. declines as long as it is above marginal cost.
d. declines as long as it is below marginal cost.
a
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For a firm in a perfectly competitive industry, the demand curve for its own product is
A) horizontal. B) vertical. C) upward sloping. D) downward sloping.
Suppose your friend is currently a nursing major. She decides she wants to switch her major to economics, but she would lose many of the college credits she has already earned. Explain to her why the past college credits should not be figured into her
marginal benefit and marginal cost calculation. Please provide the best answer for the statement.
Which of the following is NOT related to the government's political function of income redistribution?
A. providing money transfer payments B. in-kind transfers C. Social Security D. excise tax on cigarettes
Suppose that the opportunity cost of producing goods differs between two nations. We can correctly state that
A. neither country has a comparative advantage in the production of any good. B. the two nations should not specialize in the production of goods. C. specialization can lead to a decrease in the production of all goods. D. specialization can lead to an increase in the production of all goods.