The key assumption required for us to use a linear variable cost function of the form VC = bq is that:
A) marginal cost must be constant and equal to b.
B) marginal cost must be increasing at rate b.
C) fixed costs must be zero.
D) marginal cost is always greater than average variable cost.
A
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A decrease in consumption will result in
A) both total utility and marginal utility decreasing. B) total utility increasing, but marginal utility decreasing. C) total utility decreasing, but marginal utility increasing. D) both total utility and marginal utility increasing.
As a general rule, free trade:
A. increases the supply of factors of production that are domestically abundant. B. increases demand for factors of production that are domestically abundant. C. decreases the supply of factors of production that are domestically scarce. D. decreases the demand for factors of production that are domestically abundant.
A line that has a different slope at each point is a:
a. curve. b. straight line. c. vertical line. d. horizontal line.
Which of the following is least likely to be included in a definition of basic human needs?
a. A minimal level of clothing b. A minimal level of health care c. A minimal level of savings d. A minimal level of shelter e. A minimal level of calorie intake