Of the curves displayed in the graph shown, graph B is most like to be the:



A. MC curve

B. AVC curve

C. AFC curve

D. ATC curve.


A. MC curve

Economics

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Arnie's Airlines is a monopoly airline that is able to price discriminate. If Arnie's decides to price discriminate, then

A) Arnie's profit increases. B) consumer surplus increases. C) Arnie's revenues decrease. D) Arnie's sells fewer tickets. E) Arnie can no longer set a price that depends upon the buyer's willingness to pay.

Economics

When something is indexed:

A. its value is automatically adjusted in proportion to the cost of living. B. it is expressed as nominal value multiplied by price index. C. its real value is converted into nominal terms for comparison. D. its relative rank in consumption items is compensated for relative to its cost.

Economics

The Bretton Woods system required countries to actively buy and sell dollars to maintain fixed exchange rates when:

a. a country experienced a severe bout of inflation. b. the free market equilibrium exchange rate differed from the fixed rate. c. a country experienced serious unemployment. d. the threat of recession began to spread from one country to another. e. worldwide trade began to deteriorate.

Economics

Define the following terms and explain their importance to the study of economics. a. Demand b. Surplus c. Equilibrium d. Law of supply and demand e. Quantity demanded

What will be an ideal response?

Economics