Constant returns to scale cause the long-run average cost curve to be:
a. horizontal.
b. vertical.
c. upward-sloping.
d. downward-sloping.
a
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A decrease in the demand for soft drinks due to changes in consumer tastes, accompanied by an increase in the supply of soft drinks as a result of reductions in input prices, will result in
A) a decrease in the equilibrium quantity of soft drinks and no change in the equilibrium price. B) a decrease in the equilibrium price of soft drinks; the equilibrium quantity may increase or decrease. C) an increase in the equilibrium quantity of soft drinks; the equilibrium price may increase or decrease. D) a decrease in the equilibrium price of soft drinks and no change in the equilibrium quantity.
If planned construction investment increases by $30 billion and the MPC is two-thirds, total output will increase by
a. $30 billion. b. $20 billion. c. $45 billion. d. $90 billion.
In a market economy, incomes would be very equal if there was no discrimination
a. True b. False Indicate whether the statement is true or false
Which one of the following is least likely to influence the investment choices of decision makers?
a. the pure interest yield b. the expectation of profit c. the risk associated with the investment d. the general level of prices