The range of output over which a firm's average variable cost is decreasing is the same as the range over which its
A) marginal cost is increasing.
B) average fixed cost is decreasing.
C) average product is increasing.
D) average product is decreasing.
C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services
a. True b. False Indicate whether the statement is true or false
In Figure 3.2, what is the consumer surplus? 
A. BP*C B. 0PCQ* C. 0ACQ* D. P*AC
Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?
A) The firm could exit the industry in the long run. B) If the firm does not exit the industry in the long run its demand curve will shift to the left. C) If the firm does not exit the industry in the long run its demand curve will shift to the right. D) If the firm remains in the industry in the long run it will break even.