As output increases, the distance between average total cost and average variable cost increases
Indicate whether the statement is true or false
FALSE
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Under conditions of perfect competition, maximum profit or minimum loss occurs at the point where
a. AR = ATC. b. MR = AR. c. AR = MC. d. AVC = ATC.
If you were in the donut-making business, which of the following would most likely not be an explicit cost?
a. salaries b. sales taxes c. utilities, such as gas and electricity d. insurance e. the time you put into running the business
Dana is an art historian who needs to travel to Italy to do research. Art historians usually don't have a lot of money, and therefore are very sensitive to price changes. If the price of the hotel she is staying in decreases from 150 euros per night to 100 euros per night, Dana will increase the length of her stay from 20 days to 40 days. What is Dana's price elasticity of demand for nights spent
in Italy? a. 0.5 b. 6 c. 2 d. 0.667 e. 1.5
Is a benevolent command economy likely to achieve greater efficiency than a purely competitive market system? Explain