If long-run costs are plotted on the vertical axis and quantity of output plotted on the horizontal axis, a positively sloped line implies _____
a. constant returns to scale
b. economies of scale
c. diseconomies of scale
d. an increase in capital-labor ratio
e. a decrease in cost-output ratio
c
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If a single bank has $25,000 in excess reserves and the desired reserve ratio is 20 percent, what is the maximum this bank can loan?
A) $125,000 B) $20,000 C) $5,000 D) $30,000 E) $25,000
Because a monopolist does not face competition from other firms, the outcome in a market with a monopoly
a. does not illustrate profit maximization. b. is often not in the best interest of society. c. is characterized by unlimited profits. d. would be improved if the government produced the product rather than a private firm.
On a graph, an increase in quantity demanded is represented by a:
a. Movement downward and to the right along the demand curve b. Leftward shift of the demand curve c. Rightward shift of the demand curve d. Movement upward and to the left along the demand curve
In the long run perfectly competitive
A. firms will accept losses if there is the hope of someday turning a profit. B. firms will not accept anything less than a profit rate greater than the going interest rate. C. firms will accept zero economic profits. D. firms must have revenues greater than explicit and implicit costs.