An improvement in technology will lead to a change in demand.

A justification for general grants is _____

a. the equalization of revenues between government units with different income levels b. higher level governments might have a greater ability to raise revenue c. progressive taxation cannot be done on the local level d. a and b

If average variable cost exceeds average fixed cost at a particular level of output: a. Profits must be positive

b. That fact is meaningless for deciding the quantity of output to produce. c. It is more likely that the output level is low relative to the designed capacity of the production facility than that the output level is low relative to the designed capacity of the production facility. d. Both b and c. are likely true.