A firm's rent is a fixed cost. If the rent increases, then in the figure above ________ upward
A) only curve A shifts
B) only curve B shifts
C) only curve C shifts
D) both curves A and C shift
E) both curves B and C shift
D
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
The main factor that explains the difference between accounting cost and economic cost is
A) opportunity cost. B) fixed cost. C) variable cost. D) All of the above help to explain the difference.
A monopolist is producing at an output level at which MR = $6 and MC = $9. It could increase profits
A) by increasing both output and price. B) by reducing output and by increasing price. C) by reducing both output and price. D) by increasing output and by reducing price.
Which of the following is false?
a. We can be sure that people with more income get less marginal utility from their consumption of a good than those with less income. b. We can be sure that people with less income get less marginal utility from their consumption of a good than those with more income. c. We can be sure that those who receive greater marginal utility from consumption of a particular unit of an item receive greater total utility from consumption of that item. d. All of the above are false.