The short-run average total cost curve eventually turns upward to form a U shape because:
a. of diminishing marginal cost
b. of increasing average fixed cost.
c. all factors can be varied in the long run.
d. of diminishing marginal productivity.
d
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The price elasticity of demand for movies is approximately 1 and 500,000 tickets are sold per day. If the average price of a movie ticket increases by 20 percent, the number of tickets sold each day decreases to ________
A) 400,000 B) 300,000 C) 420,000 D) 475,000
A study of estimated multipliers in the major econometric models shows that
A) the government-spending multiplier tends to increase and then later decrease over time. B) the monetary multiplier is much larger than the government spending multiplier. C) there is quite a bit of variation in the value of the multipliers among the models. D) A and C are both correct.
Which of the following observations was made famous by Adam Smith in his book The Wealth of Nations?
What will be an ideal response?
A key objective of the gold standard was to
A. create a fixed exchange rate system between countries. B. allow nations to maintain their gold reserves. C. create a flexible exchange rate system between countries. D. allow nations to tax its citizens in gold.