Which of the following offers the most likely explanation of why average total cost is falling in a cereal factory?
a. Production bottlenecks and equipment breakdowns have stalled production.
b. The production facility was designed for a lower level of output.
c. The wholesale prices of grains and fruit have risen due to market demands.
d. The cost of producing an additional box of cereal is less than the factory’s average total cost.
d. The cost of producing an additional box of cereal is less than the factory’s average total cost.
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Answer the following statement true (T) or false (F)
Define imputed rental income. Is imputed rental income taxed? Based on your answer, discuss the tax code treatment of homeowners and renters on equity grounds
What will be an ideal response?
If the full-employment level of real GDP is greater than the equilibrium level of real GDP, the nation would be experiencing a(n)
A) inflationary gap. B) recessionary gap. C) demand-pull inflation. D) rising prices.
Jim transfers money from his money market account to his savings account. This action
a. reduced M1 and increases M2. b. increases M1 and reduces M2. c. has no effect on M1 or M2. d. increases M1 and M2.