At every output level, a firm's short-run average cost (SAC) equals or exceeds its long-run average cost (LAC) because
A) diminishing returns apply in the short run.
B) returns to scale only exist in the long run.
C) opportunity costs are taken into account in the short run.
D) there are at least as many possibilities for substitution between factors of production in the long run as in the short run.
E) none of the above
D
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In principle, prorationing could lead to more efficient extraction of oil from the ground
Indicate whether the statement is true or false
Equilibrium real GDP rises after the dollar strengthened. From this, we can conclude that
A) the increase in aggregate demand was greater than the decrease in aggregate supply. B) the decrease in aggregate demand was less than the increase in aggregate supply. C) the decrease in aggregate demand was more than the increase in aggregate supply. D) the increase in aggregate demand was less than the decrease in aggregate supply.
A tariff is a tax on ____ goods that is designed to ____
a. exported; protect domestic industries b. exported; hurt foreign industries c. imported; made domestic consumers pay more d. imported; protect domestic industries e. domestic; discourage imports
If $300 of new reserves generates $800 of new money in the economy, then the reserve ratio is
a. 2.7 percent. b. 12.5 percent. c. 37.5 percent. d. 40 percent.