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ECON545 Week 2 Suggested Answers to Questions and Problems NOTE: Please pay particular attention to the way that answers are stated, because these are the kinds of statements that will be looked for in the quizzes and final exam. In general, all answers need to be supported with appropriate reasoning. CHAPTER 7 Chapter 7 Question 4 4a. 4b . Chapter 7 Question 11 11. Average fixed cost. Chapter 7 Question 12 12. If marginal cost is less than average total cost, then average total cost is falling and vice versa. A baseball player hitting .333 (gets a hit one-third of the time on average) will see his average rise when he gets a hit and fall when he does not. If the average income of your class is $15,000 (some people work), and Tom Cruise decides to take a refresher course in economics and joins your class, average income rises, and vice versa if someone with no income joins the class. CHAPTER 8 Chapter 8 Question 1 1a.... View Full Document

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