The above figure shows the long-run expansion path. The long-run average cost curve will be
A) horizontal.
B) downward sloping.
C) upward sloping.
D) vertical.
B
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The table below shows a pizzeria's fixed cost and variable cost at different levels of output. Pizza's sell for $20 each.Number ofPizzas Per DayFixed Cost($/Day)Variable Cost($/Day)050002550015050500250755004501005008501255001,650When the pizzeria makes 125 pizzas per day, its total revenue is:
A. $2,500 B. $125 C. $1,250 D. $20
Production efficiency requires that
A) the economy be producing on the PPF but the marginal cost of a good does not need to equal its marginal benefit. B) the economy be producing on the PPF and that the marginal cost of a good equals its marginal benefit. C) the marginal cost of a good equals its marginal benefit but the economy does not need to be producing on its PPF. D) the society be producing at the point of allocative efficiency. E) opportunity costs be minimized.
Asymmetric information is a situation in which ________
a. both buyers and sellers are equally uninformed, and both must invest in search in order to make an informed decision b. both buyers and sellers are fully informed c. one side of the market has more reliable information than the other side does d. one side of the market has identical reliable information as the other side
A rightward shift of the long-run aggregate supply curve is caused by
A. an increase in the GDP deflator. B. an increase in the minimum wage. C. improvements in technology. D. an increase in the average duration of unemployment.