An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise.
In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is
A) negative and then linear after the minimum point.
B) linear and then positive after the minimum point.
C) negative and then positive after the minimum point.
D) positive and then negative after the minimum point.
E) negative both before and after the minimum point.
Question 2
Commercial bank reserves are typically less than 1 percent of total assets, however in 2013 bank reserves ________ because of ________.
A) dropped drastically to near zero; the wave of natural disasters experienced in the nation and around the world
B) rose to around 88 percent; the financial crisis of 2008-2009
C) rose to around 18 percent; the financial crisis of 2008-2009
D) rose drastically to around 18 percent; the wave of natural disasters experienced in the nation and around the world
E) dropped drastically to near zero; the financial crisis of 2008-2009
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