Every point on a U?shaped long-run average cost curve represents
A. the minimum point of the associated short-run average cost curve.
B. the minimum cost at which the associated output level can be produced when the scale of plant can be changed.
C. the minimum cost at which the associated output level can be produced when the scale of plant cannot be changed.
D. both A and B.
Answer: B
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Monopoly profits lead to technological process by
A) increasing the amount of human capital in the economy. B) firms lobbying Congress for protection of their monopolies. C) carefully investing deadweight loss. D) encouraging the development of innovations by firms attempting to break a monopoly.
If information is less costly and more easily available, then usually this
A. makes markets less efficient. B. increases profit opportunities. C. makes markets more efficient. D. increases the opportunity cost of acquiring more information.
Say's law implies that
A) surpluses never occur. B) there will always be unemployment. C) surpluses or shortages are possible, but only for a short time. D) shortages never occur.
The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are unwilling to offer discounts b. the Vice President want to negotiate more aggressively c. the sales staff want to negotiate too aggressively d. the Vice President is more willing to offer discounts to make the sale