The long-run average total cost curve:
A. is based on the assumption that all resources are variable.
B. will rise if economies of scale are incurred.
C. will rise if diminishing returns are encountered.
D. will fall if diminishing returns are encountered.
Answer: A
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The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops
A) 400,000 B) 0 because the United States exports flip-flops C) 700,000 D) 300,000 E) 500,000
If the value of the marginal product of physical capital is $20 and the value of the marginal product of labor is $5, the highest price that a firm should pay for an additional unit of physical capital is:
A) $4. B) $5. C) $20. D) $100.
"In the past five years the average price of our Chevrolets has risen about 6 percent a year, and each year we have sold 10 percent more cars than the previous year." How can this car dealer sell more cars as the price of the cars increases?
What will be an ideal response?
Increasing transactions costs of selling an asset make the asset
A) more valuable. B) more liquid. C) less liquid. D) more moneylike.