In a figure showing the average total cost curve and the average variable cost curve, the vertical distance between the two curves is equal to the
A) marginal cost.
B) average fixed cost.
C) total fixed cost.
D) total variable cost.
E) average marginal cost.
B
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According to this Application, a one degree Celsius rise in temperature
A) increases rich countries' exports. B) decreases poor countries' exports. C) decreases all countries' exports. D) increases poor countries' exports.
The advent of Netflix movie streaming and Redbox kiosks renting DVD and Blu-ray movies have virtually demolished the market for video rentals from brick and mortar stores such as Blockbuster. This is an example of
a. creative destruction.
b. derived demand.
c. capital accumulation.
d. the difference between normal and economic profits.
When the consumption of a good generates an external benefit:
A. the private benefit consumers receive from the good will be higher than the true social benefit. B. too much of the good will tend to be produced from the viewpoint of economic efficiency. C. the community generally suffers an exactly offsetting external cost from the production of the good. D. the market demand curve will understate the total benefits derived from consumption of the good, and as a result, too little of it will be produced and consumed.
When the federal government crafts environmental policies that make it less expensive for firms to follow green? initiatives