Figure 7-5
Which of the curves in Figure 7-5 could be a firm's average fixed cost curve?
a.
(a)
b.
(b)
c.
(c)
d.
(d)
a
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When the Federal Reserve raises the federal funds rate, the quantity of reserves ________, the quantity of money ________, and the quantity of loans ________
A) increases; increases; increases B) decreases; decreases; decreases C) increases; increases; decreases D) decreases; decreases; does not change E) decreases; does not change; does not change
A bank's commitment to provide a firm with loans up to pre-specified limit at an interest rate that is tied to a market interest rate is called
A) an adjustable gap loan. B) an adjustable portfolio loan. C) loan commitment. D) pre-credit loan line.
Sam Edison obtains a patent on his new invention: trinoculars. In the long run,
a. he can earn only a normal profit b. he may suffer an economic loss and stop producing c. his monopoly power guarantees him a positive economic profit d. he will achieve productive efficiency e. he will achieve allocative efficiency
Given the aggregate demand curve, an increase in the supply of a productive resource will:
a. increase output but leave prices unchanged b. decrease both output and prices. c. increase the price level and decrease output. d. decrease the price level and increase output. e. increase the price level but leave output unchanged.