A decreasing-cost industry will have
A) a perfectly elastic long-run supply curve.
B) a perfectly inelastic long-run supply curve.
C) an upward sloping demand curve in the long run.
D) a downward sloping supply curve in the long run.
Answer: D
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The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle
A) expansion. B) peak. C) trend. D) recession. E) trough.
In the principal-agent problem, the principal is:
A. a person who entrusts someone with performing a task. B. a person who carries out a task on someone else's behalf. C. a person who is in charge of an educational system. D. a person who is the source of the problem.
On the above graph, if the oligopolist's MC curve shifts from MC1 to MC2, the firm will charge:
A. the same price and sell more output; total revenue will increase. B. the same price and sell the same amount of output; total revenue will remain the same. C. a higher price and sell less output; it can't be determined whether total revenue will increase. D. a higher price and total revenue will increase.
According to the concept of the "invisible hand," if Susie opens and operates a profitable childcare center, then
What will be an ideal response?