If the APS is -0.2, the APC is
A. 0.
B. 0.2.
C. 0.8.
D. 1.2.
D. 1.2.
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Refer to Figure 15-14. From the monopoly graph above, identify the following:
a. The profit maximizing price b. The profit maximizing quantity c. The area representing deadweight loss d. The area representing the transfer of consumer surplus to the monopoly
Consider a firm that uses two inputs, labor and capital, to produce its output. Assume labor is measured on the horizontal axis and capital on the vertical axis
Which of the following best explains why the marginal rate of technical substitution decreases in absolute value as we move down an isoquant? A) The law of imperfect substitutability: labor and capital are not perfect substitutes; therefore, a firm must replace decreases in capital with increases in labor. B) The law of diminishing returns: for a given decline in capital, decreasing amounts of labor are required to produce the same level of output. C) The law of increasing marginal opportunity cost: if a firm uses less and less capital it must use more and more labor, which drives up the cost of labor. D) The law of diminishing returns: for a given decline in capital, increasing amounts of labor are required to produce the same level of output.
According to a royal investigation in 1623 of the English colonies in Virginia, the average life expectancy of newly arrived setters was
a. 2 years. b. 5 years. c. 10 years. d. 20 years.
Which of the following happened during the Great Depression?
a. Unemployment and prices increased while output decreased. b. Unemployment increased while output and prices decreased. c. Unemployment and prices decreased while output increased. d. Unemployment and output decreased while prices increased. e. Unemployment and output increased while prices decreased.