Which of the following is true for a constant cost industry?
a. The total cost of producing 500 units will be the same as the total cost of producing 250 units.
b. If 100 units can be produced for $500, then 200 units can be produced for $1,000.
c. The demand curve and, therefore, the unit price in the industry are constant.
d. Firms in the industry will hold output constant if the price of the product increases.
B
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Which of the following changes would contribute to a nation's rapid long-run economic growth?
A. faster technological progress B. faster population growth C. less physical capital per worker D. lower levels of average human capital
Use a graph to illustrate the long run adjustment to the scenario you depicted in (d). Explain what will happen over time.
The United States finances current account deficits largely with dollars and, as a result, faces almost no constraint on its ability to run deficits
Indicate whether the statement is true or false
To decrease the money supply, the Fed can
a. buy government bonds or increase the discount rate. b. buy government bonds or decrease the discount rate. c. sell government bonds or increase the discount rate. d. sell government bonds or decrease the discount rate.