Which of the following applies most generally to supply in the long run?
A) Average total cost must decline.
B) Producers are able to make change in all their factors of production.
C) Producers are only able to make change in their variable factors of production.
D) All original producers will leave the market.
B
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What is the opportunity cost of going from point C to point D?
McDonald's can offset the decline in demand by influencing the different variables that affected the demand function for their products
Indicate whether the statement is true or false
An example of a good that is not rival in consumption is:
A. a sports car. B. a paper clip. C. bottled water. D. electricity.
Which of the following is not a valid explanation for government provision and forced consumption of education?
a) myopic individuals make time-inconsistent decisions b) education is a public good c) forced education redistributes income d) education has positive externalities, or benefits to non-consumers e) education enhances human capital and raises GDP