Over all levels of output, if a firm's long-run average cost curve declines as output increases, then
A. small firms and large firms will have identical average costs.
B. there should be a large number of firms in the industry.
C. there should be only one firm in the industry.
D. small firms would have lower average costs of production than large firms.
Answer: C
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A competitive market begins in a situation of long-run equilibrium. Then, there is a decrease in demand. Describe the process that eventually leads to a new long-run equilibrium
If we observe a decrease in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by a(an):
A. increase in the supply of the good. B. increase in the demand for the good. C. decrease in the demand for the good. D. decrease in the supply of the good.
The post hoc, ergo propter hoc fallacy is the belief that
A. it is impossible to draw generalizations about cause and effect. B. what is true for a part is necessarily true for the whole. C. what is true for the whole is necessarily true of the parts. D. if Event A happens before Event B happens, then Event A causes Event B to occur.
If workers in nuclear power plants underestimate the true risk of their jobs
A) employers will pay compensating differential to compensate employees fully for the risk they have assumed. B) safety legislation will not make workers better off. C) the supply of workers in this occupation will exceed demand. D) the wages of these workers will not be high enough to compensate them fully for the risk they have assumed.