Everything else equal, the AC curve will shift downward if

Which of the following positions might be taken by the ruler of a nation practicing mercantilism?

a. support of the merchant marine sector b. support for the elimination of trade barriers such as tariffs c. support for the reduction of government holdings of specie d. discouragement of exploration and colonization e. All of the above.

When a production function exhibits a diminishing, but positive, marginal product of labor,

a. output increases, but at an increasing rate, as more workers are employed. b. output increases, but at a decreasing rate, as more workers are employed. c. output declines as more workers are employed. d. the effects on marginal product are ambiguous.