Extensive advertising will always lead to an increase in average total cost for the firm
a. True
b. False
Indicate whether the statement is true or false
True
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A farm is able to produce 5,000 bushels of peaches per season on 100 acres. Assume it adds one more acre and is able to produce 6,000 bushels per season. The marginal product of the additional acre of land for this farm is:
a. 6,000 bushels per acre per year. b. 5,000 bushels per acre per year. c. 1,000 bushels per acre per year. d. 11,000 bushels per acre per year.
You withdraw some of your savings to invest in a new business venture. Which of the following statements is true?
a. The return you will earn from this new investment is your opportunity cost. b. The interest rate you would have earned in the bank is higher than the return from this investment. c. The return you expect to earn from this new investment must exceed your opportunity cost. d. The return you expect to earn from this new investment must equal your opportunity cost.
If the government were to reduce its spending, it would be enacting:
A. contractionary fiscal policy. B. expansionary fiscal policy. C. a budgetary crisis intervention. D. expansionary budgetary policy.
If pollution is reduced below the socially efficient level:
a. the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement b. the marginal cost of pollution abatement is less than the marginal benefit of pollution abatement. c. the marginal cost of pollution abatement equals the marginal benefit of pollution abatement. d. nothing can be said about the relationship between the marginal cost and marginal benefit of pollution abatement.