Diminishing marginal returns implies
A) decreasing average variable costs.
B) decreasing marginal costs.
C) increasing marginal costs.
D) decreasing average fixed costs.
C) increasing marginal costs.
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If a firm is a price taker, then the demand curve faced by the firm is perfectly elastic
a. True b. False Indicate whether the statement is true or false
McSweed Cleaning Co is a partnership between Tom McSweed and his wife's accountant. The accountant provided $40,000 in initial start-up capital (along with record keeping services) to Tom's provision of day-to-day staff coordination and back-breaking work. They recently shut down with $45,000 in debt after selling the business assets. For how much debt is each partner responsible?
a. $45,000 b. an equal share c. proportionate to their initial investment d. none e. $5,000 for Tom and $40,000 for the accountant
If the demand curve facing a firm is perfectly elastic, then:
A. it can increase its total revenue by lowering the price of its product. B. its marginal revenue will equal price. C. its marginal revenue schedule decreases twice as fast as the demand curve. D. its marginal revenue schedule will decrease at an increasing rate.
Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary policy? A significant decrease in
A) oil prices. B) business taxes. C) income tax rates. D) investment spending.