If the long-run average cost curve is U-shaped, the optimal scale of production from society's viewpoint is
A) the minimum efficient scale.
B) where maximum economic profit is earned by producers.
C) where firm profit is large enough to finance research and development.
D) one which guarantees economic profit.
Answer: A
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The quantity of labor supplied is determined by the:
A. number of firms. B. opportunity cost of providing labor. C. marginal product of labor. D. technology.
In a cash acquisition
A) cash is transferred from one firm to another. B) the acquired firm must issue new stock. C) the acquiring firm buys stock. D) the acquiring firm buys the acquired firm's bonds.
The natural rate of unemployment is:
a. Fixed and unchanging in the long-run. b. The rate that governments should use as their goal, in the sense that they should apply prudent monetary and fiscal policies to achieve it. c. The unemployment rate to which a nation gradually moves if the real wage is free to fluctuate and the nation's actual inflation rate equals its expected inflation rate. d. Basically a long term goal that no country every really achieves, but it serves as a Northern Star for policy makers. e. None of the above.
The primary interest of firms engaging in offshoring is to find lower wages and to decrease production costs
Indicate whether the statement is true or false