Total cost divided by the quantity of output the firm chooses when it can choose a production facility of any size describes:
A. the short-run average cost of production.
B. the long-run average cost of production.
C. the short-run marginal cost of production.
D. the long-run marginal cost of production.
Answer: B
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The data presented in the text shows that in the period from 1947-2013, real GDP in the United States has
A) decreased in every year since 1947. B) generally remained the same. C) decreased only in recent years. D) increased substantially.
Draw individual demands for caviar for Al, Barbara, Chuck, and Denise where Al’s demand is relatively inelastic, Barbara’s is elastic, Chuck’s is upward sloping, and Denise refuses to eat caviar at any price. Then draw the corresponding market demand.
What will be an ideal response?
Why is the value of the sales of stocks and bonds excluded from GDP?
What will be an ideal response?
The theory of purchasing power parity cannot fully explain exchange rate movements in the short run because
A) all goods are identical even if produced in different countries. B) monetary policy differs across countries. C) some goods are not traded between countries. D) fiscal policy differs across countries.