What is the shape of the total variable cost curve? Explain
What will be an ideal response?
Because more output costs more than less output, total variable costs always rise with output. Therefore, the total variable cost curve always has a positive slope.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Because of market power, wages are higher under monopsony than under competitive conditions
Indicate whether the statement is true or false
The major problem with direct controls as an environmental protection measure has been
A. insufficient enforcement. B. special interest legislation. C. illegal dumping. D. legislation that lack substantial penalties.
Which of the following is true about the relationship between price and quantity supplied?
A) There is always a direct relationship between price and quantity supplied. B) There is always an inverse relationship between price and quantity supplied. C) There is usually a direct relationship between price and quantity supplied. D) There is usually an inverse relationship between price and quantity supplied.