Suppose a cost function is TC = Aq3 + bq2 + cq + d. Then the average variable cost is

a. Aq2 + bq + cq +d/q
b. Aq2 + bq + c
c. Aq3 + bq2 + cq
d. d


b

Economics

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Indicate whether the statement is true or false

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Price elasticity of demand is a measure of the relative responsiveness of the change in price to a change in quantity demanded

a. True b. False Indicate whether the statement is true or false

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In a given year the nominal growth rate is 7% with inflation and population growth rates of 2% and 1.2% respectively, then real growth rate of GDP per capita is:

A. 3.8%. B. 5.0 %. C. 7.0 %. D. 5.8%.

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The law of demand holds

A. for individuals, but not for markets. B. for markets, but not for individuals. C. for both individuals and for markets. D. for neither individuals nor for markets.

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