Which curve shows the lowest average total cost at which it is possible to produce each output when the firm has time to change both its labor force and plant size?
What will be an ideal response?
The long-run average cost curve shows the lowest average total cost at which it is possible to produce each output when the firm has had time to change all its inputs.
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For a nondiscriminating monopolist, which of the following is false?
a. The monopolist produces where MR = MC. b. The monopolist's marginal revenue curve is the same as its demand curve. c. The monopolist will never produce in the inelastic range of its demand curve. d. A monopolist is more allocatively inefficient than a perfectly competitive firm. e. The monopolist produces where P > MC.
Implicit costs are:
A. regarded as costs by accountants but not by economists. B. nonexpenditure costs. C. costs that vary proportionately with output. D. payments that a firm makes to other firms or individuals who supply resources to it.
Both the PIH and the LCH predict that
A) the sum of saving and consumer durable purchases should increase in relation to personal income in booms and fall in recessions. B) the sum of saving and consume nondurable purchases should increase in relation to personal income in booms and fall in recessions. C) the sum of saving and consumer durable purchases should decrease in relation to personal income in booms and increase in recessions. D) saving should increase in relation to personal income in booms and fall in recessions, but that consumer durables tend to behave in a more stable manner over a cycle.
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B