Congress passed the Clean Air Act in 1970. Since this act was passed, emissions of the six main air pollutants
A) have increased significantly due to the growth of the U.S. economy.
B) cannot be measured since Congress failed to appropriate money to monitor the level of emissions.
C) have fallen by more than one-half.
D) have remained essentially constant, even though significant economic growth has occurred in the United States since 1970.
C
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Refer to Figure 11-5. Curve G approaches curve F because
A) marginal cost is above average variable costs. B) fixed cost falls as capacity rises. C) average fixed cost falls as output rises. D) total cost falls as more and more is produced.
At the point at which P=MC, suppose that a perfectly competitive firm's MC = $100, its AVC = $80 and its AC = $110. This firm should
A) shut down immediately. B) continue operating in the short run. C) try to take advantage of economies of scale. D) try to increase its advertising and promotion.