The long-run average total cost curve:
A. indicates the lowest unit costs achievable when a firm has had sufficient time to alter plant size.
B. has a shape that is the inverse of the law of diminishing returns.
C. displays declining unit costs so long as output is increasing.
D. can be derived by summing horizontally the average total cost curves of all firms in an industry.
Answer: A
You might also like to view...
The federal government ran a budget deficit of approximately ________ in fiscal year 2011
A) $14 trillion B) $800 billion C) $250 billion D) $1.3 trillion
If the tax system is made more progressive, the after-tax wages of high-income workers would _____
a. fall b. rise c. stay constant d. rise or fall depending upon job market conditions
In the money market, if the money supply decreases, the opportunity cost of holding money: a. decreases and the quantity of money demanded increases
b. decreases and the quantity of money demanded falls. c. increases and the quantity of money demanded falls. d. increases but the quantity of money demanded remains unchanged. e. increases and the quantity of money demanded also increases.
If increasingly more units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two goods is
A) a downward-sloping straight line. B) circular. C) an upward-sloping curve. D) a downward-sloping curve that is bowed outward. E) a downward-sloping curve that is bowed inward.