Engineers for The Giffen Record Company have determined that a 35% increase in all compact disc inputs will cause a 45% increase in output. Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases.
A. average costs to increase
B. average costs to remain constant
C. average costs to decrease
D. marginal costs to increase
Answer: C
Economics
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Explain the difference between partial equilibrium analysis and general equilibrium analysis
What will be an ideal response?
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Assume the economy is operating at a real GDP above full-employment real GDP. Keynesian economists would prescribe which of the following policies?
a. Nonintervention b. Fixed rule c. Contractionary d. Expansionary
Economics