In the short run, the marginal cost of the first unit of output is $20, the average variable cost of producing three units of output is $16, and the marginal cost of producing the second unit of output is $16. What is the marginal cost of producing the third unit of output?
A. $12
B. $16
C. $20
D. $48
Answer: A
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What will be an ideal response?
Assume that an economy is in equilibrium with a budget deficit of $130 billion, positive net exports of $453 billion, and savings equal to $1,550 billion. If taxes are zero, then planned investment spending must be equal to:
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A. 8%; increases by 8%. B. 5%; increases by 7%. C. 7%; increases by 5%. D. 10%; stays the same.
Which of the following changes would not result in a shift in the demand curve for milk?
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