Which of the following is true of marginal cost?
a. Marginal cost is the cost per unit of output produced.
b. Marginal cost is the change in total cost divided by the change in total output.
c. Marginal cost curve is negatively sloped at the profit-maximizing level of output.
d. Marginal cost is equal to total cost divided by the quantity of output.
e. Marginal cost initially increases with an increase in output but subsequently declines.
b
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According to economists who support passive policymaking
A) expansionary policies can reduce unemployment without increasing the price level. B) policies that attempt to exploit the Phillips curve trade-off will eventually become ineffective for reducing unemployment. C) there is no difference between the effect of an anticipated change in aggregate demand and the effect of an unanticipated change in aggregate demand of an identical amount. D) workers always consider a change in nominal wages to be a change in real wages.
Left shoes and right shoes are perfect complements. An indifference curve for left and right shoes is a line with
A) constant slope. B) a 30-degree angle. C) a 45-degree angle. D) a 90-degree angle.