A firm’s AC will eventually begin to rise because
A. managers’ salaries rise with output.
B. bottlenecks may be reached for some inputs.
C. MFC begins to rise near capacity.
D. the range of negative returns is reached.
Answer: B
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From the late 1960s to the late 1990s, the share of GDP devoted to government purchases
A) drifted gradually upward. B) drifted gradually downward. C) remained fairly steady. D) increased, but only after the onset of a war or a military buildup.
Tools and equipments used in production are:
a. natural resources. b. entrepreneurial resources. c. human capital. d. capital resources. e. labor resources.
Can insurance be thought of as diversification? Defend your answer
In a natural monopoly, and in platform monopolies that have natural monopoly elements, the average cost:
A. increases with additional production. B. remains constant with additional production. C. vacillates up and down with additional production. D. decreases with additional production.