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

Economics

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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.

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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.

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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

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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

Economics