The graph of the average cost curve
A. is identical to the AVC curve.
B. is above the AVC curve
C. lies everywhere below the AFC curve.
D. lies below the AFC curve.
Answer: B
You might also like to view...
What market structures other than oligopoly have the characteristic of one firm's actions affecting the actions of its competitors? Explain your answer
What will be an ideal response?
Distorting taxes can invalidate Ricardian equivalence because
A) they confuse consumers about the need for government to repay its debt. B) alternative ways of collecting the same tax revenue produce different amounts of lost welfare. C) they are inferior to lump-sum taxes. D) they are more popular, politically, than lump-sum taxes.
The basic nature of the real property tenure that was transferred here from England included all of the following characteristics of ownership except
(a) Ownership by purchase was perpetual as long as taxes due were met. (b) Land could descend to heirs either by will or inheritance. (c) Ownership included surface resources but not subsurface resources or mineral rights, like iron ore, whose ownership was retained by the state. (d) The right to exploit owned resources (right of waste) was complete.
According to the Laffer curve, increases in the tax rate will lead to a(n)
A) steady decrease in tax revenues. B) steady increase in tax revenues. C) initial decrease in tax revenues and then an increase in tax revenues. D) initial increase in tax revenues and then a decrease in tax revenues.