Which of the following is true if a firm has indivisible inputs?
A. The long-run average cost curve is downward sloping at lower levels of output.
B. The long-run fixed cost curve is downward sloping at lower levels of output.
C. The long-run total cost curve is downward sloping at lower levels of output.
D. The long-run marginal cost curve is downward sloping at lower levels of output.
Answer: A
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The government uses the buying power of wages rather than face value or nominal value in reporting changes in "real wages" in the economy
Indicate whether the statement is true or false
According to the simple quantity theory of money, which of the following variables are considered either constant or relatively stable?
A) V and Y B) Y and Ms C) P and Ms D) P and Y
When the Federal Reserve sells government bonds to the public, it:
a. increases the M1 money supply and increases the reserves of the commercial banking system. b. increases the M1 money supply, while reducing the reserves of the commercial banking system. c. reduces the M1 money supply, while increasing the reserves of the commercial banking system. d. reduces the M1 money supply and decreases the reserves of the commercial banking system.
The Federal Reserve
a. designs tax policy. b. enforces the nation's antitrust laws. c. sets the nation's monetary policy. d. analyzes data on workers.