The Rule of 70 States That a Variable's Approximate Doubling

question 165

Multiple Choice

The rule of 70 states that a variable's approximate doubling time equals:

• A) 70 times the growth rate.
• B) the growth rate divided by 70.
• C) 70 divided by the doubling time.
• D) 70 divided by the growth rate.

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Definitions:

Purely Competitive

A market structure characterized by a large number of sellers and buyers, homogeneous products, and no barriers to entry or exit.

Short-run Supply Curve

Represents the relationship between price and quantity supplied over a short period, assuming some inputs are fixed.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of output changes as production increases.

Shut Down

A short-term decision by a firm to cease operations because operating costs exceed revenue, usually considered in the context of price being less than variable costs.