Because the short-run average total cost curve slopes downward for an information product, the firm experiences
A) a downward sloping marginal cost curve.
B) a downward sloping average variable cost curve.
C) short-run economies of operation.
D) long-run diseconomies of scale.
C
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One reason that an efficiency wage leads to greater worker productivity is that:
A. earning more than the market wage gives workers an incentive to stay with the firm. B. it deters workers from trying to start a union. C. due to competition for their jobs, which are now desired, firms to pay less overall for a worker in the long run. D. it is set right at market equilibrium which creates an efficient labor market.
A recession is a period of time in which real GDP falls
a. True b. False Indicate whether the statement is true or false
Suppose the government raises taxes. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?
Suppose there is a reduction in expected future output. This will cause which of the following to occur?
A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period