When a firm experiences continually declining average total costs,
a. the firm is a price taker.
b. society is better served by having one firm supply the product.
c. the firm will earn higher profits than if average total costs are increasing.
d. All of the above are correct.
b
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A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the
A) total amount paid to only the new worker. B) total amount paid to all previously hired workers. C) the total amount paid to all the workers, both the new one and the previously hired workers. D) the additional revenue created by having an additional worker minus the cost of hiring the worker.
A consumption tax that replaces an income tax
a. only taxes a household on the money it spends. b. discourages saving. c. would likely result in a lower level of saving than an income tax. d. ultimately taxes income twice - once when the household pays income tax and once when the household makes a purchase.
Factor mobility refers to
A. Technological change in the use of capital. B. Technological change in the use of labor. C. The ease of reallocating resources. D. The increase in labor productivity.
A commercial bank has checkable-deposit liabilities of $50,000 and a reserve ratio of 20 percent. What is the amount of required reserves?
A. $1 million B. $10,000 C. $50,000 D. $250,000