Moving downward on a downward sloping linear demand curve, the absolute value of the price elasticity of demand
A) is constant.
B) increases continuously.
C) decreases continuously.
D) may either increase or decrease.
Answer: C
Economics
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When increasing amounts of a variable factor are added to a fixed factor, the output increases, but at a diminishing rate.
Answer the following statement true (T) or false (F)
Economics
A manager wishes to estimate an average cost equation of the following form:C = a + bQ + cQ2whereQ is the level of output. Letting Z = Q2 and using least-squares estimation, the manager obtains the following computer output: 
Given the above information, when output is 20 units, what is average cost?
A. $340 B. $280 C. $360 D. $160 E. $200
Economics