Price equals the minimum of long-run average cost
A) in a long-run equilibrium.
B) in a short-run equilibrium as well as in a long-run equilibrium.
C) whenever average revenue equals marginal cost.
D) along a horizontal long-run supply curve, but not along an upward sloping long-run supply curve.
A
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A chemical factory and a fishing club share a lake. Producing chemicals creates water pollution that harms the fish. The marginal social cost, private marginal cost, and marginal benefit from producing chemicals are in the figure above
Initially the lake is owned by no one. Keeping in mind the Coase theorem, if transactions costs are low then if the chemical factory owns the lake ________ tons of chemicals will be produced and if the fishing club owns the lake, ________ tons of chemicals will be produced. A) 4; 4 B) 4; 8 C) 8; 4 D) 8; 8
According to the text, the income elasticity of demand for food in industrialized nations is lower than that of poorer nations
Indicate whether the statement is true or false
Based on the quantity equation, if M = 100, V = 3, and Y = 150, then P =
a. 1. b. 1.5. c. 2. d. 4.5.
If the consumer price index decreased from 1.66 to 1.59, then it must be the case that ________ relative to prices in the base year.
A. some prices rose and some prices fell B. the weighted average level of prices rose C. the weighted average level of prices fell D. all prices fell