The marginal cost of hiring the 7th worker is

With increasing returns (falling average costs), as the remaining firms expand, their demand curves become _______________ due to foreign competition, and firms must _______________.

a. steeper; raise prices b. flatter; lower prices c. flatter; raise prices d. steeper; lower prices

When Jack's income increases by $1,000, he spends an additional $850 dollars. This implies that his marginal propensity to save is 0.85

Indicate whether the statement is true or false