The shape of short-run variable cost curve is determined by
a. the firm's effort to minimize cost
b. the firm's effort to maximize profit
c. competition in the industry
d. the marginal productivity of the variable inputs the firm uses
e. the money the firm spends
D
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If the government implements a tax on the general public to pay for street lighting in one neighborhood,
A) the tax redistributes well-being and the benevolent social planner is not pleased. B) the tax redistributes well-being, but the benevolent social planner is pleased. C) the tax reduces well being and the benevolent social planner is not pleased. D) the tax has no bearing on well-being and the benevolent social planner is indifferent.
If the economic growth rate INCREASES from 1% to 5%, the simple accelerator hypothesis suggests that
A) investment will continue to rise as output increases. B) investment will fall as output increases. C) investment will rise since the rate of change in output increases. D) None of the above is correct.