The relationship between long-run and short-run average total costs is known as the:
A. economic relationship.
B. envelope relationship.
C. efficiency relationship.
D. technical relationship.
Answer: B
You might also like to view...
In the figure above, the price of bonds would fall from P2 to P1 if
A) there is a business cycle recession. B) there is a business cycle expansion. C) inflation is expected to increase in the future. D) inflation is expected to decrease in the future.
Say a monopolist sells in two separate markets, with demand PA = 100 - 2Q and PB = 50 - Q respectively. Marginal costs in both markets are constant and equal to 8. The profit maximizing quantity of output in market A would be
A. 5. B. 46. C. 21. D. 23.
Assume individuals consider only the medium run effects of changes in future macro variables when forming expectations of future output and future interest rates. Suppose individuals expect the central bank to pursue a monetary expansion in the future. Given this information, we know with certainty that
A) current output and the current interest rate will both increase. B) current output will decrease. C) the current interest rate will decrease. D) the current output effects are ambiguous. E) current output will not change.
Explain the endowment effect
What will be an ideal response?