If actual inflation is less than the expected rate of inflation, then probably
a. the borrower gains at the expense of the lender.
b. neither the borrower nor the lender gains.
c. the lender gains at the expense of the borrower.
d. the purchasing power of the borrower is increased.
c
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The law of diminishing returns begins first to affect a firm's short-run cost structure when
A) average variable cost begins to increase. B) marginal cost begins to increase. C) average cost begins to increase. D) average fixed cost begins to decrease.
If the market price is $5 and you are currently producing at a level where average total cost is $3 and falling, you should
a. b or c, it doesn't matter b. shut down c. produce only enough to cover variable costs d. produce where MR = MC e. produce until the average total cost and average revenue are equal