An aggregate supply curve that is a vertical line must be:
A. a short-run curve.
B. an individual firm's supply curve.
C. an individual industry's supply curve.
D. a long-run curve.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. Risk is the chance of something bad happening. 2. Risk analysis is an important element of environmental policy development. 3. Risk that is deliberately assumed is considered involuntary risk. 4. Exposure to passive or secondhand smoke is a type of voluntary risk. 5. Both hazard and exposure define environmental risk, but each can independently affect the outcome.
Which of the following is a potential monetary policy instrument for the Fed?
A) federal funds rate B) loanable funds C) inflation rate D) profit rates E) real interest rate
In the short run, how will a profit-maximizing monopolist react if its marginal cost suddenly increases? It will
a. lower price to expand revenue possibilities b. restrict output to extract a higher price from customers c. maintain the current price if profit is still positive d. increase plant size to lower marginal cost e. decrease plant size to lower marginal cost
Returns to scale is a ______ concept because ______.
A. short-run; it's related to the law of diminishing marginal returns B. short-run; it deals with varying the level of one input while holding other inputs constant C. long-run; a firm can change its output level only in the long run D. long-run; it refers to changes in all of the firm's inputs