Answer the following statements true (T) or false (F)
1) In the short run, managers are limited because at least one input is fixed.
2) The long-run marginal cost curve intersects the minimum point on the long-run average cost curve.
3) The long-run profit-maximizing quantity is found by setting the long run marginal cost equal to the long-run average cost.
4) In response to a decrease in the market demand, to maximize short-run profits, managers of perfectly competitive firms will decrease production by employing fewer fixed inputs.
5) At its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $4 and its long-run average cost is $3, it should expect the market price of its product to fall.
1) TRUE
2) TRUE
3) FALSE
4) FALSE
5) TRUE
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Suppose you work for a government agency that is considering removing certain agricultural subsidies. The removal of these subsidies will increase the price, thus lowering consumers' welfare
Because only aggregate market data is available, you are unable to measure the exact values for the compensated and equivalent variation by consumer. However, you are able to estimate the change in market consumer surplus. Assuming agricultural products are normal goods, how does your estimate of consumer surplus compare to the unknown EV and CV? Explain. Under what conditions will the three measures of welfare be close to one another?
Every country imposes tariffs on at least some imports
a. True b. False Indicate whether the statement is true or false
What entity or entities take the necessary steps to increase or decrease the money supply?
a. commercial banks b. the central bank c. investment firms d. pension plans
Recall the Application about how to wash carbon out of the air to answer the following question(s).Recall the Application. What should change in the future in order for the carbon washing machines to be more widely used?
A. The technology must improve enough to drop the cost per ton of carbon washed. B. The government must disseminate the existence of the new technology. C. The carbon tax must decrease enough to make the carbon washing machines more practical. D. The atmosphere must become even more polluted before it makes the technology financially viable.