How do constant returns to scale affect the shape of the long-run average cost curve?
What will be an ideal response?
When the firm faces constant returns to scale, average costs per unit produced remain constant as the firm's scale of production rises. Thus, the long-run average cost curve would be horizontal.
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If Year 1 is the base year, the growth of real GDP is approximately
A) 100%. B) 109.5%. C) 137.5%. D) 148%.
In the last two decades, the Consumer Price Index in the U.S. has typically increased by _____ each year
a. more than 5 percent b. less than 2 percent c. 2–4 percent d. 4–8 percent
If Kevin's children run a lemonade stand for a day and sell 200 glasses of lemonade at $0.50 each, their total revenues are
a. $100. b. $199.50. c. $200. d. $400.
In a market economy, who or what determines who produces each good and how much is produce
A. the government B. lawyers C. lotteries D. prices