The principle that pulls down the average cost (ATC), and then, as output continues to expand, pulls it up, is
a. lower prices and then higher prices.
b. rising and then diminishing marginal returns.
c. lower average fixed cost and then higher average fixed cost.
d. lower resource prices and then higher resource prices.
b. rising and then diminishing marginal returns.
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The demand for money is:
A. limited by the amount of currency printed by the government. B. unlimited, since people want to hold as much money as possible. C. the amount of income an individual chooses to hold in the form of money. D. the amount of wealth an individual chooses to hold in the form of money.
Expected utility is a weighted average in which the weights are
A) average incomes. B) marginal incomes. C) total incomes. D) probabilities.
The figure above shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What is the firm's economic profit per day?
A) zero B) between $1 and $700 C) between $701 and $900 D) more than $901
Suppose Arf n' Barf restaurant has a monopoly on restaurant food in a certain small town. Their rent, which is one of several fixed costs they pay whether they sell food or not, has gone up. In the short run, the Arf n' Barf should
a. pay the higher rent and increase menu prices b. pay the higher rent and leave menu prices unchanged c. pay the higher rent and lower prices d. go out of business e. shut down