Bob Edwards owns a bagel shop. Bob hires an economist who assesses the shape of the bagel shop's average total cost (ATC) curve as a function of the number of bagels produced. The results indicate a U-shaped average total cost curve. Bob's economist
explains that ATC is U-shaped for two reasons. The first is the existence of diminishing marginal product, which causes it to rise. What would be the second reason? Assume that the marginal cost curve is linear. (Hint: The second reason relates to average fixed cost)
Average fixed cost always declines as output rises because fixed cost is being spread over a larger number of units, thus causing the average total cost curve to fall.
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The deadweight loss from a monopoly loss measures the inefficiency created by monopoly
Indicate whether the statement is true or false
Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living
Indicate whether the statement is true or false
Nominal values are measured in
a. constant prices. b. dollars. c. actual prices. d. highest prices.
Which of the following measures of effectiveness is an intermediate measure?
a. Cholesterol level b. Bone-mass density (BMD) c. Hip fracture d. Tumor size e. Blood pressure