Constant cost industries:
a. use large portions of the total supply of specialized resources
b. significantly increase the demand for inputs when expanding output, and as a result, input prices rise.
c. do not use inputs in sufficient quantities that a change in industry output would affect the prices of the inputs.
d. are those in which the cost curves of individual firms shift upwards as industry output expands.
c
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The original intention of the Fed's role as lender of last resort was to make loans to banks that were
A) not illiquid nor insolvent. B) illiquid, but not insolvent. C) insolvent, but not illiquid. D) both illiquid and insolvent.
The most likely source of investment funds for a proprietorship is
A) sales of stocks. B) sales of bonds. C) loans from banks. D) the personal funds of the owner.
If the level of aggregate expenditure was $16.8 trillion in 2013, the level of aggregate income in the economy during 2013 was _________.
A. also? $16.8 trillion because of the identity between aggregate expenditure and income. B. less than? $16.8 trillion because taxes will reduce income below aggregate expenditure. C. less than? $16.8 trillion because the United States imports more than it exports. D. more than? $16.8 trillion because transfers? (entitlements) allow income to exceed aggregate expenditure.
Supply-side economics focuses on tax cuts to stimulate
A. aggregate supply by increasing production. B. government spending. C. household consumption. D. aggregate demand by reducing saving.