The long run average cost curve may initially slope downward due to
A) decreasing average fixed costs.
B) increasing marginal returns.
C) economies of scale.
D) All of the above.
C
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If the Fed wants to fight inflation, it will ________ the federal funds rate in order to ________
A) raise; decrease aggregate supply B) raise; increase aggregate supply C) raise; decrease aggregate demand D) lower; decrease aggregate demand E) lower; increase aggregate supply
Discuss specific cases that lead to an increase in the concentration and market power from deregulation.
What will be an ideal response?
A market must be in a physical location.
Answer the following statement true (T) or false (F)
If two inputs are complementary and employed in fixed proportions, an increase in the price of one input will:
A. Decrease the demand for the other input B. Increase the demand for the other input C. Increase the quantity demanded for the other input D. Have no effect on the demand for the other input