A single-plant firm trying to select the rate of output consistent with an overall plant size that yields the minimum efficient scale will choose a rate of output for which
A) the short-run marginal cost curve crosses the short-run average total cost curve at that rate of output.
B) the long-run marginal cost curve crosses the long-run average fixed cost curve at that rate of output.
C) long-run average total cost is lowest at that rate of output.
D) total fixed cots are minimized at that rate of output.
Answer: C
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If the quantity of money demanded exceeds the quantity of money supplied, then
A) the quantity of nonmonetary assets demanded exceeds the quantity supplied. B) the quantity of nonmonetary assets supplied exceeds the quantity demanded. C) the quantity of nonmonetary assets demanded will still equal the quantity supplied, all else being equal. D) you can make no conclusions about the relative supply and demand of nonmonetary assets.
Rivalry among firms would tend to be high if
a. Firms are located further from each other b. Firms are located close to one another c. There is only one firm in the market d. None of the above
According to the graph shown, if the economy is operating in autarky and decides to open trade with a tariff, the impact on domestic demand is they will:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. decrease consumption from 1500 to 1150.
B. increase consumption from 815 to 1500.
C. increase consumption from 815 to 1150.
D. decrease consumption from 1500 to 815.
The natural rate of unemployment includes frictional, cyclical, and structural unemployment
a. True b. False Indicate whether the statement is true or false