The aggregate demand curve shows a(n)
A. positive relationship between prices and quantities.
B. inverse relationship between the price level and the aggregate quantity demanded.
C. independent relationship between the price level and the aggregate quantity demanded.
D. inverse relationship between the product price and the quantity of a good demanded.
B. inverse relationship between the price level and the aggregate quantity demanded.
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Suppose a farmer is a price taker in soybeans with cost functions given by TC = .1q2 + 2q + 100 MC = .2q + 2 Suppose the farmer has to purchase a license for $50 per period in order to stay in business. In this case, its marginal cost function is
a. still MC = .2q + 2 b. MC = .2q + 50 c. MC = .2q + 52 d. MC = 50
The prisoner's dilemma:
A. can involve two players. B. can be summarized in a payoff matrix. C. leads to a less-than-ideal outcome for all players. D. All of these statements are true.
In Figure 21.1, diminishing marginal returns first occur with the
A. Fourth worker. B. Second worker. C. Fifth worker. D. Third worker.
The minimum efficient scale is the output at which the long-run average cost curve becomes horizontal.
Answer the following statement true (T) or false (F)