Refer to Figure 8.1. At the profit-maximizing level of output,
A) AVC is minimized.
B) ATC is minimized.
C) MC is minimized.
D) total cost is minimized.
E) no costs are minimized.
E
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When marginal cost is greater than average cost, average cost decreases as output increases
Indicate whether the statement is true or false
If the time for an economy to self-correct is shorter than the active policy lags, then:
a. active policy should be strengthened b. active policy is likely to destabilize the economy. c. time is required to accumulate evidence that the economy is performing below its potential. d. the aggregate demand curve shifts more rapidly than the short-run aggregate supply curve. e. active policy will work better than passive policy.
An article in the textbook suggests that one method to correct the higher education inefficiency is to
a. provide free higher education to all Americans. b. have college students sell equity in themselves. c. reduce interest rates on student loans. d. increase the number of colleges and universities in the United States.
Empirical economics refers to the
A. belief that what is true for a part is necessarily true for the whole. B. exclusion of irrelevant data when analyzing a model. C. model of economics used prior to the Industrial Revolution. D. collection and use of data to test economic theories.