When a firm increased its output by one unit, its AC decreased. This implies that

A) MC < AC.
B) MC = AC.
C) MC < AFC.
D) the law of diminishing returns has not yet taken effect.

A

Economics

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As shown in the figure above, the rent ceiling ________ consumer surplus and ________ producer surplus

A) decreases; decreases B) decreases; increases C) increases; increases D) increases; decreases E) decreases; does not change

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Most economists believe that a zero rate of unemployment

A) is obtainable with the correct monetary policy. B) would result in a better functioning economy. C) is inconsistent with a well-functioning economy. D) is obtainable only if the inflation rate is also zero.

Economics