In long-run equilibrium, a competitive firm produces the level of output at which:
a. marginal cost is at a minimum.
b. short-run average total cost and long-run average cost are at a minimum.
c. total revenue is at a maximum.
d. diseconomies of scale end.
b
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Fixed costs are
A) a production expense that does not vary with output. B) a production expense that changes with the quantity of output produced. C) equal to total cost divided by the units of output produced. D) the amount by which a firm's cost changes if the firm produces one more unit of output.
The making and selling of a pencil for ten cents would likely NOT be possible, but for
A) relative advantage. B) the production possibilities curve. C) absolute advantage. D) the division of labor.
The Japanese economy began its development after the:
a. establishment of a monarchy b. the Tokogawa Dynasty c. The Second World War d. The Tan dynasty e. the Meiji Restoration
The amount of investment demand at each interest rate suddenly falls. If the Fed holds to an unchanged money supply target, the change in GDP is __________ if it had held to an unchanged interest rate target
A) greater than B) less than C) the same as