The current exchange rate system for most currencies is described most accurately as one of

Price floors and price ceilings

A) always reduce total surplus. B) reduce consumer surplus and increase producer surplus. C) reduce producer surplus and increase consumer surplus. D) Not enough information to determine.

The law of diminishing returns begins first to affect a firm's short-run cost structure when

A) average variable cost begins to increase. B) marginal cost begins to increase. C) average cost begins to increase. D) average fixed cost begins to decrease.