In the short run, a firm using variable labor and fixed capital inputs achieves the ________ level of output at the minimum point on its average total cost curve.
A. efficient
B. only possible
C. least efficient
D. highest cost
Answer: A
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Which of the following is considered to be the major cause of the recession of 2001?
a. A decrease in defense spending b. A spike in oil prices and the collapse of the housing bubble c. A decline in oil prices and the collapse of the housing bubble d. Federal Reserve policy e. None of the above.
Exhibit 23-1 Nation of Padia
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Exhibit 23-1 shows the production possibilities curve of the nation of Padia, an LDC. With foreign investment, which of the following changes that was not previously possible would become possible?
A. a move from V to III B. a move from IV to II C. a move from III to a point beyond the production possibilities curve D. a move from III to I
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
An increase in the real exchange rate will cause
A) an increase in net exports. B) an increase in the quantity of imports. C) an increase in output. D) a decrease in government spending. E) all of the above