Marginal cost is the:
A. change in total cost that results from producing one more unit of output.
B. change in average total cost that results from producing one more unit of output.
C. rate of change in total fixed cost that results from producing one more unit of output.
D. change in average variable cost that results from producing one more unit of output.
Answer: A
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In 1886, the price of a 6.5-ounce glass bottle of Coca Cola was priced at 5 cents. In the case of this size bottle of Coca Cola, the price could be considered
A) as remaining sticky in the short run but flexible in the long run. B) as remaining sticky in both the short run and the long run. C) as being flexible in the short run, but returning to price stickiness in the long run. D) as being flexible in both the short run and the long run.
The Keynesian analysis of fiscal policy implies that
a. fiscal policy should generally be expansionary except during periods of economic recession. b. fiscal policy should generally be restrictive except during inflationary booms. c. the federal budget should be balanced annually except during war. d. the federal budget should be used to maintain aggregate demand at a level consistent with full employment.
Suppose that the exchange rate between the U.S. dollar and the Mexican peso starts out at $0.12 per peso, and then changes to $0.09 per peso. The result will be that Americans will buy __________ pesos because Mexican goods become relatively __________ expensive
A) fewer; more B) fewer; less C) more; more D) more; less
The contestable market model of oligopoly bases pricing and output decisions on:
A. the threat of new entrants into the market. B. market structure. C. market share. D. the degree of product differentiation.