26. National Defence is considered a public good because it is A) Rival and non-excludable B) Publically provided by the government Cy Non-rival and non-excludable DJ Open to all citizens who wish to serve in the military 27. In the short run, if we want to increase output we need to use more variable inputs, such as workers, with a given amount of fixed inputs, such as machinery. Eventually, what can we expect about our production costs as output levels continue to increase? A) Marginal cost will begin to increase B) Average fixed cost will begin to increase C) Average variable cost will begin to decrease D) Average total cost will remain constant 28. When the marginal product of labour is increasing, marginal cost is . And when the marginal product of labour is decreasing, marginal cost is A) Increasing; increasing B) Decreasing; decreasing C) Increasing; decreasing DY Decreasing; increasing 29. Why does the demand curve of an individual consumer slope down? A) As the consumer's income increases, quantity demanded increases BY As the individual consumes more of the good, their marginal utility diminishes C) As the individual consumes more of the good, their total utility diminishes D) As the individual consumes less of the good, their marginal utility diminishes 30. Consider the market for instant ramen noodles, an inferior good. If the income of consumers increases, this results in A) An increase in price and quantity By A decrease in price and quantity C) An increase in price, but a decrease in quantity DJ A decrease in price, but an increase in quantity