If marginal cost is less than average total cost,
a. marginal cost must be falling
b. average total cost must be increasing
c. average variable cost equals average total cost
d. average variable cost must be decreasing
e. average variable cost may be increasing or decreasing
E
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Refer to Figure 9.1. If the government establishes a price ceiling of $20, how many widgets will be sold?
A) 20 B) 30 C) 40 D) 50 E) 60
Economists suggest that a market can fail if
A. consumers have to pay more than they want to. B. governments dictate prices. C. producers get smaller profits than they desire. D. production or consumption can harm an innocent third party.
A bank allows us to diversify risk because it has a:
A. big pool of borrowers and savers, so the risk of repayment is spread among many. B. small amount of borrowers, but many savers, so it can combine savings to make larger loans. C. small amount of borrowers and savers, so it can connect the optimal saver to the best-matched borrower. D. big pool of borrowers, but not many savers, so it can choose the riskiest person to borrow from.
If opening up international trade resulted in the U.S. importing ballpoint pens, what would tend to happen to the U.S. price of ballpoint pens? a. The domestic price will fall
b. The domestic price will rise. c. The domestic price will remain constant. d. It is impossible to predict the impact.