If both the marginal cost and the average variable cost curves are U-shaped, at the minimum point of the average total cost curve, the marginal cost curve must be:
a. greater than average variable cost.
b. less than average variable cost
c. equal to average variable cost.
d. at its minimum.
a
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Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests. Suppose your classmate, Heidi, purchased two tickets for $40 each. Is this transaction economically efficient?
A) Yes, it is efficient only from the perspective of the seller and not from the perspective of the buyer. B) Yes, it was a voluntary exchange that benefited both parties. C) No, people should never be allowed to sell items they received for free. D) No, Heidi paid too much for the tickets.
The method of estimating long-run costs in which knowledgeable professionals familiar with production facilities and processes calculate optimal combination of inputs to produce given quantities and then estimate costs is known as
A) engineering cost estimating. B) the survivorship method. C) regression analysis. D) None of the above
Which of the following schools of thought emphasize the role of money supply in determining equilibrium real GDP and price level?
a. Traditional Keynesian economics b. New Keynesian economics c. New classical economics d. Classical economics e. Monetarist economics
At any given moment there is one exchange rate: a. for all the world's currencies
b. for currencies in the free world. c. between every pair of currencies. d. established by the Federal Reserve System.