If marginal cost is rising, what must be happening?
a. Average variable cost must be falling.
b. Marginal product must be falling.
c. Marginal product must be rising.
d. Average fixed cost must be rising.
Ans: b. Marginal product must be falling.
Economics
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Alan runs the only taxi service in town. Whenever he raises his fares above $.30 per mile, other taxi firms enter and compete with him to drive his fares back to $.30 per mile. Describe what kind of market Alan is operating in and if it is plausible that Alan might set his fare so as to achieve efficiency? Explain
Economics
Bank managers seem to have to walk a tightrope between managing risk and earning a profit. Explain.
What will be an ideal response?
Economics