If a firm experiences constant returns to the variable input in the short run:

a) marginal cost will be greater than average variable cost, but the two will become more equal as output increases.
b) marginal cost will be less than average variable cost, but the two will become more equal as output increases.
c) marginal cost will be greater than average variable cost, and the difference between the two will become larger as output increases.
d) marginal cost and average variable cost will be equal over the range of output in question.

Jamie is saving for a trip to europe. she has an existing savings account that earns 3 percent annual interest and has a current balance of $4,200. jamie doesn’t want to use her current savings for vacation, so she decides to borrow the $1,600 she needs for travel expenses. she will repay the loan in exactly one year. the annual interest rate is 6 percent. a. if jamie were to withdraw the $1,600 from her savings account to finance the trip, how much interest would she forgo? .b. if jamie borrows the $1,600 how much will she pay in interest? c. how much does the trip cost her if she borrows rather than dip into her savings?

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of:

When the benefit of one particular use of a resource is greater than the opportunity cost, then that resource is which of the following? a. not scarce b. being used efficiently c. a normal good d. non-excludable