A constant-cost industry is one in which:
A. the demand curve is horizontal.
B. the long-run supply curve is horizontal.
C. the short-run supply curve is horizontal.
D. All of these
Answer: B
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Mr. James' company produces candy bars. Which is NOT a variable input for this firm?
A) Sugar B) Assembly line workers C) The big chocolate stirring machines D) Packaging materials
The Utility Possibility Frontier is derived from utility curves.
A. True B. False C. Uncertain
If a good generates an external cost, the market will produce
a. some of the good but not enough b. too much of the good. c. an optimal amount of the good. d. none of the good.
A good example of central planning at work in the U.S. is:
A. McDonald's fries being the same everywhere. B. New York City's rent control program. C. car manufacturers establishing suggested retail prices. D. unions working with businesses to establish wages.