If you must determine the long-run equilibrium output of a perfectly competitive firm and you are permitted to see only one curve, which of the following curves is most helpful?
A. Demand
B. Marginal cost
C. Average cost
D. Average fixed cost
Answer: C
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The marginal rate of substitution is the rate at which a person is willing to substitute one good for another good while remaining on the same indifference curve
Indicate whether the statement is true or false
Because of the problem of adverse selection,
A. low-risk individuals may have a hard time finding insurance worth buying. B. high-risk individuals may have a hard time finding insurance worth buying. C. everyone is typically charged a lower premium. D. individuals who buy insurance act more recklessly.
To be effective, an import quota must
a. reduce the price and increase the quantity of imports b. set the price of the imported good higher than the domestic equilibrium price c. restrict imports to less than would be imported under free trade d. restrict imports to less than exports in trade with that particular country e. be directed at the product of a specific country
Suppose that an economy grows by 4 percent, total factor productivity grows by 3 percent, and the labor force increases by 6 percent. If labor and capital are the only inputs and labor contributes 40 percent to GDP, then the stock of capital must have _____
a. fallen by 5% b. fallen by 3.33% c. fallen by 2.33% d. risen by 3% e. risen by 1.8%