If the long-run average total cost curve for a firm is horizontal in the relevant range of production, then it indicates that there:
A. Is a minimum efficient scale
B. Are constant returns to scale
C. Are diseconomies of scale
D. Are economies of scale
B. Are constant returns to scale
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A sudden increase in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply
A focus of antitrust activities is
A) entry blocking. B) price fixing. C) the buying of patents. D) rent-seeking by lobbyists.
Often, improvements in technology can:
A. continuously increase the productivity of workers. B. lead to more improvements in technology. C. lead to sustainable rates of growth in income for a country. D. All of these are true.
A minimum wage is the:
A. highest wage that a firm is legally obligated to pay its non-skilled labor. B. prevailing wage for low-income workers in a nation. C. lowest wage that a firm is legally allowed to pay its workers. D. wage every high school dropout will earn if they are employed.