At outputs less than the minimum of average variable cost:
a. marginal cost is greater than average variable cost.
b. marginal cost is less than average variable cost.
c. marginal cost is equal to average variable cost.
d. marginal cost is parallel to average variable cost.
B
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Exhibit 2-6 Production possibilities curve data A B C D E F Capital goods150 140 120 90 50 0 Consumer goods 0 20 40 60 80 100 In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150. B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced. C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. D. the amount of consumer goods produced must be greater than zero.
What is a long-run supply curve?
What will be an ideal response?
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Economies of scale, control over a scarce input, and patents are all examples of barriers to entry
a. True b. False Indicate whether the statement is true or false