As a firm continues to produce additional output, which of the following will continue to decline as output expands?
A) average total costs
B) marginal costs
C) average fixed costs
D) opportunity costs
Answer: C
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A) Nobody B) Anybody who puts their mind to it C) Only the most competent hydrologist D) A good accountant
What is inflation and how is it measured using the Consumer Price Index?
What will be an ideal response?
Following the 2007-2009 financial crisis, many people feared that Greece might leave the euro and resume using the drachma. If that happened, the drachma might be worth less than the euro
When using fiat money like the drachma, the key to acceptance is that households and firms have confidence that if they accept drachma in exchange for goods and services, the drachma will not lose much value during the time they hold them. If sellers were not willing to accept the drachma in exchange for goods and services, the drachma would not serve as A) a medium of exchange. B) fiat money. C) legal tender. D) a unit of account.
Cheating in a cartel is more likely to occur if the industry
A) has a large number of firms. B) has homogeneous products. C) has easily observable prices. D) has little variation in prices.