The long-run average cost curve
A) is always a downward sloping straight line.
B) is a curve which is tangent to each member of a set of short-run average cost curves.
C) is identical to the marginal cost curve.
D) should always be horizontal.
Answer: B
You might also like to view...
How do economists define the time period known as the long run?
What will be an ideal response?
If in the long run, any government policy that increases exports
A) also increases imports. B) decreases imports. C) has no impact on imports. D) makes imports become negative.
If Jin-Ho buys a personal computer to maintain household financial records and prepare budgets, he
a. will spend less time in nonmarket work b. will spend more time engaged in leisure activities c. will increase the productivity of market work d. is less likely to hire tax preparation services on the market e. is less likely to prepare his own income tax returns at home
The law of diminishing marginal utility
a. is valid only after basic necessities (such as food and shelter) have been obtained b. says that marginal utility decreases as more of a good is consumed c. implies that spending on a good will decrease as more of that good is consumed d. says that marginal utility decreases as income increases e. implies that spending on a good decreases as income increases