In the above figure, as output increases, the distance between curves B and C decreases because
A) total cost decreases as output increases.
B) average fixed cost decreases as output increases.
C) there are diminishing returns to average total cost.
D) there are increasing marginal costs as output increases.
B
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Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. For Kelly, what is the total utility received from consuming 5 magazines?
A) 5 B) 20 C) 25 D) 255
Suppose Jon Stewart of the "Daily Show" makes an annual income of $1,000,000. If he quit his television job and went into producing he could make $400,000 per year. Jon Stewart's annual economic rent to labor is
A) $1,400,000. B) 1,000,000. C) $400,000. D) $600,000.
If there is an outward shift in U.S. demand for French goods, the result will be
A) a decrease in the dollar price of a euro. B) an inward shift in French demand for U.S. goods. C) a decrease in euros traded. D) an increase in the dollar price of a euro.
A decrease in the quantity of resources available causes a movement down along a given PPF
Indicate whether the statement is true or false