An engineer has informed the city manager that the marginal cost of an additional car crossing the city bridge is zero? If you were required to draw this cost function on a graph what would it look like? What is the slope of this graph?
What will be an ideal response?
The graphs would be a horizontal line at a cost of $0 . The slope of the line is also zero since the cost of additional cars traveling on it don't change.
Economics
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In the long run, when the Fed increases the quantity of money the
A) no real variable changes. B) price level falls. C) real interest rate rises. D) nominal interest rate falls.
Economics
A one-year bond has an interest rate of 5% today. Investors expect that in one year, a one year bond will have an interest rate equal to 7%
According to the expectations theory of the term structure of interest rates, in equilibrium, a two-year bond today will have an interest rate equal to A) 3.0%. B) 5.0%. C) 5.5%. D) 6.0%.
Economics