Which of the following curves are U-shaped?
i. average variable cost curve
ii. average fixed cost curve
iii. average total cost curve
A) i and ii
B) i and iii
C) ii and iii
D) i, ii, and iii
E) only ii
B
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A) Sam pays $600 for 30 days of guitar classes. He attends an hour-long class every day. If, instead of attending class, he works at a part-time job, he would be paid $5 an hour. Or, he could work at a fast-food outlet and earn $9 per hour
Once he has already paid a nonrefundable fee of $600 to enroll in the class, what is his opportunity cost of attending each hour of class? b) Suppose workers decide to work more and consume less leisure when their hourly wage rate increases. What could explain this behavior?
An investment of $10,000 promises a payment of $13,000 after six years. If the annual rate of interest is $8%, what is the net present value of the investment?
What will be an ideal response?
Answer the following questions true (T) or false (F)
1. Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes. 2. One way by which firms differentiate their products is to try to anticipate changes in consumer tastes and adapt their products to fit those changed tastes. 3. In the long-run equilibrium, a monopolistically competitive firm earning normal profit produces the allocatively efficient output level.
Which is a demand factor in economic growth?
A) an increase in total spending in the economy B)technological progress and innovation C) more human and natural resources D) an increase in the econmy's stock of capital goods