A downward-sloping portion of a long-run average total cost curve is the result of:
a. economies of scale.
b. diseconomies of scale.
c. diminishing returns.
d. the existence of fixed resources.
a
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Refer to Figure 12-14. Consider a typical firm in a perfectly competitive industry which is incurring short-run losses. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
How is the international economy qualitatively different in the first part of the twenty-first century from what it was like in the first part of the twentieth century?
What will be an ideal response?
Under perfect competition
A) information about prices is hard to obtain. B) there is a maximum number of firms that can enter the market. C) if a firm exits the market, price will rise. D) transaction costs are low.
A movement along a supply curve is induced by a change in
A) input prices. B) taxes and subsidies. C) price expectations. D) the product's own price.