During 2012, a country reports that its price level fell and the money wage rate did not change. These changes led to a(n) ________ because their country experienced a(n) ________
A) decrease in the quantity of real GDP supplied; higher real wage rate and lower profits for firms
B) increase in the quantity of real GDP supplied; higher real wage rate and lower profits for firms
C) decrease in the quantity of real GDP supplied; lower real wage rate and lower profits for firms
D) increase in the quantity of real GDP supplied; lower real wage rate and higher profits for firms
E) decrease in aggregate demand; economic expansion
A
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Assume someone organizes all farms in the nation into a monopoly. What is the monopoly's marginal cost curve?
A) It is a horizontal line at the competitive industry's price. B) It is a vertical line at the formerly competitive industry's quantity. C) It is a vertical line at the monopoly's chosen output level. D) It is the formerly competitive industry's supply curve. E) It is the same as the formally competitive industry's average total cost curve.
For a short-run cost function which of the following statements is (are) not true?
a. The average fixed cost function is monotonically decreasing. b. The marginal cost function intersects the average fixed cost function where the average variable cost function is a minimum. c. The marginal cost function intersects the average variable cost function where the average variable cost function is a minimum. d. The marginal cost function intersects the average total cost function where the average total cost function is a minimum. e. b and c