When inflation occurs, net exports will
a. increase as imports decrease.
b. increase as exports increase.
c. decrease as imports decrease.
d. decrease as imports increase.
d
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Assume the firms in a monopolistically competitive industry initially are earning positive economic profits. Which of the following will not occur over time?
A) The firms' economic profits will be reduced. B) New firms will enter. C) Demand for the existing firms' output will become more inelastic. D) The number of substitutes available in the industry will increase.
Total costs increase from $1500 to $1800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. AVC rise by $300 b. AVC rise by $1800 c. AVC rise by $1500 d. AVC rise by $0
In the long run, when an increase in the quantity of output decreases average total cost, this is called:
A. economies of scale. B. diseconomies of scale. C. constant economies to scale. D. minimum average total cost.
Which of the following affects both the marginal and average total cost curves of a firm in the short run?
A. A change in consumer income. B. A change in property taxes. C. A change in profit taxes. D. A change in payroll taxes.