A market demand curve reflects the
A) marginal private benefits of consuming a product.
B) external benefits of consuming a product.
C) marginal social benefits of consuming a product.
D) sum of private and social benefits of consuming a product.
Answer: A
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Economists argue that individuals should continue to consume until total benefit equals total cost
Indicate whether the statement is true or false
Which of the following is TRUE regarding the real interest rate?
I. The real interest rate is the opportunity cost of borrowed funds. II. The real interest rate equals the nominal interest rate adjusted for inflation. A) I B) II C) both I and II D) neither I nor II
The real purchasing power of the average worker's yearly earnings in the United States in 2014 was ________ as in 1960.
A. more than twice as large B. about the same C. about half as much D. five times as large
Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens in the diagram above?
A) All the cost curves shift upward.
B) Only the average variable cost and average total cost curves shift upward; marginal cost is notaffected.
C) Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected.
D) None of the curves shifts; only the fixed cost curve, which is not shown here, is affected.