Which of the following is true with regards to a long-run cost function?
a. The shape of the firm's long-run cost function is important in decisions to expand the scale of operations
b. The long-run average cost curve is U-shaped
c. The long-run average cost curve is flatter than the short-run average cost curve.
d. The curve consists of the lower boundary of all the short-run cost curves
e. All of the above
e
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Situation 4-1 During the winter of 1973-74, a general system of wage and price controls (including a price ceiling on gasoline) was in force in the United States. At the beginning of 1974, some oil-producing countries imposed an oil embargo (a legal prohibition on commerce) on the West. In the spring of 1974, price controls were abolished. Refer to Situation 4-1. If no price controls had been in
place, the effect of the oil embargo on the equilibrium price and quantity of gasoline would have been A) an increase in both price and quantity. B) an increase in price and a decrease in quantity. C) a decrease in price and an increase in quantity. D) a decrease in both price and quantity.
Given the table below, what is the marginal cost of the 250th unit of output? 
A. $4.00 B. $0.14 C. $7.40 D. $2.40 E. none of the above
The statement, "Assuming that if it is rational for one person to stand at a football game to get a better view then it is rational for everyone to stand at a football game to get a better view" is an example of:
A. the fallacy of division. B. the ceteris paribus assumption. C. economic reasoning. D. the fallacy of composition.
Refer to the graph shown. A movement from D to B is most likely to be caused by:
A. a decrease in input prices. B. a decrease in import prices. C. a decrease in aggregate demand. D. an increase in expected inflation.