When XYZ Corporation produces 35 units of output its average variable cost is $5 . The marginal cost of the 36th unit of output is $7 . If the firm chooses to produce the 36th unit of output, what will happen to average variable cost? Explain
What will be an ideal response?
If the firm decides to produce the 36th unit of output, its average variable cost will rise because the marginal cost is greater than the average variable cost.
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What are the key differences between how we illustrate a contractionary fiscal policy in the basic aggregate demand and aggregate supply model and in the dynamic aggregate demand and aggregate supply model?
What will be an ideal response?
While increases in population are often seen as a problem by some observers can you think of a way in which an increase in population can be a positive factor?
What will be an ideal response?
"Good news" about an expenditure-related indicator means that
A) it is higher than its previous value. B) it is higher than it was expected to be. C) it is lower than its previous value. D) it rose faster than the rate of inflation.
The introduction of the practice of securitization allowed:
A. banks to more safely assume subprime mortgage loans. B. the government to promote a sense of security in the banking industry. C. banks to more safely leverage their investments. D. borrowers to feel better about taking out subprime loans.