In the long run, a company should choose the plant size that yields the lowest average total cost for the desired rate of output.
Answer the following statement true (T) or false (F)
True
In the long run, the firm would choose the plant that yielded the lowest average cost for any desired rate of output.
You might also like to view...
If the price level in the United States is 110, the price level is 135 in Mexico, and the nominal exchange rate is 12.5 pesos per dollar, what is the real exchange rate from the U.S. perspective?
A) 8.8 B) 10.2 C) 10.8 D) 11.4
Within the Keynesian model, if the output of an economy is less than the full-employment level, then
a. a reduction in government expenditures will direct the economy back to full-employment equilibrium. b. a reduction in wage rates and resource prices will quickly restore full-employment equilibrium. c. a reduction in the real interest rate will soon restore full-employment equilibrium. d. output will tend to remain below full-employment capacity unless aggregate expenditures increase.
Suppose that labor is mobile between sectors but that capital and land are specific. Then labor will tend to benefit from trade when:
a. it spends a large amount of its income on the imported good. b. it spends a large amount of its income on the exported good. c. wages do not change much in percentage terms. d. all of these occur.
The bursting of the stock market bubble was one of the contributing factors to the 2008 crisis.
Answer the following statement true (T) or false (F)