Average fixed costs will
A) rise as output rises.
B) fall then rise as output rises.
C) rise then fall as output rises.
D) fall as output rises.
Answer: D
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The Prisoner's Dilemma involves two spies who are held in separate soundproof rooms. But even if the two spies could communicate, what makes it difficult for them to achieve the cooperative solution (both not confessing)?
a. The problem is their lack of information. b. The problem is that it is a nonzero sum game. c. The problem is that both spies have incentives to double cross each other. d. The problem is that all the outcomes are not particularly good for either player.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.