A ____ total cost function implies that marginal costs ____ as output is increased
a. linear; increase linearly
b. quadratic; are constant
c. cubic; increase linearly
d. linear; are constant
e. none of the above
d
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From 2000 to 2009, the net annual inflow of illegal immigrants has averaged about:
A. 250,000 per year B. 500,000 per year C. 750,000 per year D. 1 million per year
When the government creates a monopoly, the social loss may include
a. declining marginal costs. b. the cost of lawyers and lobbyists hired to convince lawmakers to continue the monopoly. c. excessive monopoly profits. d. diminishing marginal revenue.
Which of the following is known to occur when the consumer equilibrium is achieved for someone at a carnival?
a. He has ample money in his carnival budget for additional rides. b. The marginal utility of the last ride he took on the roller coaster, a $7 ride, is equal to the marginal utility of the last ride he took on the hammerhead, a $3 ride. c. The marginal utility per dollar spent on the last roller coaster ride he took is equal to the marginal utility per dollar spent on the last hammerhead ride he took. d. He continued to ride the roller coaster until his marginal utility was driven down to zero, and then he switched to the hammerhead and rode that until he became sick to his stomach. Thus he had to leave the carnival before spending all his budget, and missed seeing the man shot out of the cannon.
People tend to spend more money the ______ the amount of credit available and the ____ the stock of liquid assets in the hands of consumers.
A. higher; higher B. lower; lower C. higher; lower D. lower; higher