If the marginal cost curve is below the average variable cost curve, then
A) average variable cost is increasing.
B) average variable cost is decreasing.
C) marginal cost must be decreasing.
D) average variable cost could either be increasing or decreasing.
Answer: B
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A sudden fall in housing prices in Potentia has lowered the confidence of households. Assuming all else equal, this is likely to lead to a(n) ________
A) increase in the demand for construction workers B) fall in the unemployment rate C) increase in the overall price level D) decline in current consumption
Due to the entry and exit of firms in a monopolistically competitive market:
a. economic profits and economic losses are dissipated in the long run. b. economic profits persist in the long run, but not economic losses. c. economic losses will exist in the long run, but not economic profits. d. both economic profits and economic losses exist in the long run.