If the price of a variable input increases, then A. the total cost curve will shift up. B. the average total cost curve will shift down. C. the marginal cost curve will shift down. D. the fixed co The average cost will fall as output expands so long as ___. (a) ...
The marginal cost curve for a firm typically declines during the initial phase as output expands and then at some point begins to increase. This is caused by the nature of a standard underlying production function for a firm. Answer and Expla...
Answer: B Topic: Production Efficiency Skill: Conceptual Status: Modified 10th edition AACSB: Reflective Thinking 27) If an economy is operating at a point inside the production possibilities frontier, then A) societys resources are being inefficiently utilized. B) the PPF curve will shift inward...
16.Diminishingmarginalproductexistswhenthetotalcostcurvebecomesflatteras outputsincreases. ANS:FDIF:2REF:13-2NAT:Analytic LOC:CostsofproductionTOP:Diminishingmarginalproduct MSC:Interpretive 17.Diminishingmarginalproductexistswhentheproductionfunctionbecomes flatterasinputsincrease. ANS:TDIF:2REF:13-2NAT:Analytic...
that the market, if left alone, will ignore the externality and will reach its equilibrium at point B, where the private marginal cost curve MC and the demand curve intersect. Point A, where the social marginal cost curve MC’ and the demand curve intersect, is the optimal so...
I don’t expect that the pandemic will have large effects on the open economy IS curve for most advanced economies. There is some risk, however, that the transmission of policy rate changes to aggregate demand in EMs could be adversely affected by the large buildup of debt that occurred dur...
B: left shift Right shift of C: D: invariant The answer remains unchanged [16] the absolute value of the slope of the indifference curve is (). Answer wrong A: marginal utility B: marginal cost C: marginal substitution rate D: isn't right Answer marginal rate of substit...
Based on the determined shape, the inflection points of the curve can be computed. When GDP per capita passes through these points, the direction of change in environmental pollution will overturn, such as from negative to positive or from positive to negative. Among them, N and inverted N sh...
The marginal cost curve is upward sloping as illustrated in Figures 2.2 and 2.4 in the textbook. The marginal benefit (MB) of a good is the maximum that someone is willing to pay for one more unit of it. The principle of decreasing marginal benefit holds that as more of a product is ...
1. Because the market demand curve holds other things constant, it need not be stable over time. Figure 3 2. If any of these other factors change, the demand curve will shift. a. An increase in demand is represented by a shift of the demand curve to the right. b. A decrease in ...