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Author Question: If issues can be ranked along a one-dimensional continuum, a successful political candidate will be ... (Read 14 times)

nummyann

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on: Jul 1, 2018
If issues can be ranked along a one-dimensional continuum, a successful political candidate will be an individual who is best able to align her political platform to the positions of the median voter.
 
  a. True b. False

Question 2

Even though fixed costs do not affect the output decision, an increase in fixed costs results in a wider range of prices for which the firm operates at a loss.
 
  What will be an ideal response?


Qarqy

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Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

True. An increase in fixed costs will shift AC upward but leave AVC unchanged. The gap between AVC and AC represents prices at which the firm will operate at a loss.


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