1. If the marginal product of an input is falling, then what must be true? Average fixed costs must be constant. Marginal cost must be rising. Average total cost must be constant. Marginal cost must be constant. 2. If Captain America and Thor decide to specialize, who should specialize in each good? Captain America should specialize in shields. Thor should specialize in hammers. Thor should specialize in both goods. Captain America should specialize in both goods. Captain America should specialize in hammers. Thor should specialize in shields. 3. Aditya regularly consumes two goods, which we’ll call good X and good Y. One day, the price of good X decreases. As a result, Aditya decreases his consumption of good Y. Based only on this information, goods X and Y seem to be: Substitutes for each other Complements for each other Normal goods Inferior goods
1. If the marginal product of an input is falling, then what must be true? Average fixed costs must be constant. Marginal cost must be rising. Average total cost must be constant. Marginal cost must be constant. 2. If Captain America and Thor decide to specialize, who should specialize in each good? Captain America should specialize in shields. Thor should specialize in hammers. Thor should specialize in both goods. Captain America should specialize in both goods. Captain America should specialize in hammers. Thor should specialize in shields. 3. Aditya regularly consumes two goods, which we’ll call good X and good Y. One day, the price of good X decreases. As a result, Aditya decreases his consumption of good Y. Based only on this information, goods X and Y seem to be: Substitutes for each other Complements for each other Normal goods Inferior goods
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. If the marginal product of an input is falling, then what must be true?
Average fixed costs must be constant.
Marginal cost must be rising.
Marginal cost must be constant.
2. If Captain America and Thor decide to specialize, who should specialize in each good?
Captain America should specialize in shields. Thor should specialize in hammers.
Thor should specialize in both goods.
Captain America should specialize in both goods.
Captain America should specialize in hammers. Thor should specialize in shields.
3. Aditya regularly consumes two goods, which we’ll call good X and good Y. One day, the price of good X decreases. As a result, Aditya decreases his consumption of good Y. Based only on this information, goods X and Y seem to be:
Substitutes for each other
Complements for each other
Normal goods
Inferior goods
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