Refer to the short-run production and cost data. The curves of Figures A and B suggest that:
A. marginal product and marginal cost reach their maximum points at the same output.
B. marginal cost reaches a minimum where marginal product is at its maximum.
C. marginal cost and marginal product reach their minimum points at the same output.
D. AVC cuts MC at the latter's minimum point.
B. marginal cost reaches a minimum where marginal product is at its maximum.
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Which set of points would show a movement from depression to full employment?
A. a movement from Point C to B
B. a movement from Point B to A
C. a movement from Point C to E
D. a movement from Point D to C
Fixed investment is
A) when a firm adds to its inventories of goods. B) when a firm accumulates profits. C) dissavings. D) an expenditure by firms on new machines that are expected to produce income in the future.
In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will
A) increase. B) decrease. C) become negative. D) not change.
If elasticity of demand is 0.2, elasticity of supply is 0.6, and a 10 percent excise tax is levied on the good:
A. consumers pay 25 percent of the tax. B. consumers pay 20 percent of the tax. C. sellers pay 60 percent of the tax. D. sellers pay 25 percent of the tax.