Much of the research on the minimum efficient scale suggests that for many firms the LRAC curve is:
A) downward sloping over the relevant range of output.
B) upward sloping over the relevant range of output.
C) U-shaped.
D) flat over a relatively large range of output levels.
D
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In a housing market with a rent ceiling set below the equilibrium rent,
A) some people seeking an apartment to rent will not be able to find one. B) the total cost of renting an apartment will decrease for all those seeking housing. C) some landlords will not be able to find renters to fill available apartments. D) search will decrease because renters no longer need to search for less expensive apartments. E) None of the above answers are correct because to have an impact, the rent ceiling must be set above the equilibrium rent.
Suppose the following information is known about a market: 1. Sellers will not sell at all below a price of $2. 2. At a price of $10, any given seller will sell 10 units. 3. There are 100 identical sellers in the market
Assuming a linear supply curve, use this information to derive the market supply curve.
If the MPC is 0.5, then the spending multiplier must be:
A. 1.2. B. 2. C. 2.25. D. 2.5.
Assume peanut butter and jelly are complements. Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to
A. Decrease and the equilibrium quantity of jelly to decrease. B. Decrease and the equilibrium quantity of jelly to increase. C. Increase and the equilibrium quantity of jelly to increase. D. Increase and the equilibrium quantity of jelly to decrease.