If marginal costs for a firm are constant would the average total cost curve still have be u-shaped? Explain
What will be an ideal response?
If marginal costs are constant then the average total cost curve will be downward sloping. The only way that the average total cost curve could be u-shaped is if marginal cost eventually rises.
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Asymmetric information before a transaction takes place generates the problem of
A) moral hazard. B) adverse selection. C) bank runs. D) irrational behavior.
Refer to above figure. If the economy were in the initial position (where OmL1 workers were in manufacturing, what trade policy might gain ABC of economic welfare?
What will be an ideal response?
The loan supply curve has a positive slope
A. for all savers. B. only for savers with fixed accumulation targets. C. for all savers except those with fixed accumulation goals. D. only for those contemplating retirement.
The United States introduced investment tax credit in 1962 and has continued to offer it till date. This has reduced the volatility of investments in the country
a. True b. False Indicate whether the statement is true or false