Average fixed cost
a. increases as output increases.
b. declines as output increases.
c. is always zero.
d. remains constant even if output increases.
e. decreases and then increases as output increases.
b. declines as output increases.
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Why are economists less worried about industry concentration than they once were?
What will be an ideal response?
The technique that estimates long-run costs and the minimum efficient scale by determining the scale of operation at which most firms in an industry are concentrated is called the:
A) engineering estimation technique. B) statistical cost estimation technique. C) survivor approach. D) back-of-the-envelope approach.
The Fed's forward guidance in 2011 and early 2012 was framed in terms of keeping interest rates low
A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.
When equilibrium GDP is too large, we have
A. a recessionary gap. B. a depression. C. an inflationary gap. D. escalating inflation.