The downward-sloping part of the long-run average total cost curve is a result of:
a. economies of scale
b. diseconomies of scale.
c. constant returns to scale.
d. diminishing marginal returns.
a
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Starting from an initial long-run equilibrium, under the adaptive expectations hypothesis, a shift to a more expansionary policy will increase
a. prices and unemployment in the long run. b. real output in the short run but not in the long run. c. real output in the long run but not in the short run. d. real output in both the long run and the short run.
The International Water Management Institute estimates that clean water could be provided to everyone on earth for an outlay of $______ a year beyond current spending on water projects.
Fill in the blank(s) with the appropriate word(s).
Regretting the last unit of consumption of beer implies that
A) the total utility from drinking beer is negative. B) beer is an inferior good. C) the marginal utility of the last unit of beer consumed is negative. D) the demand curve for beer is horizontal.
The indifference curve between eggs and dozens of eggs would be
A. a rectangular hyperbola. B. a downward sloping straight line with a slope of -12. C. bowed in to the origin. D. bowed out from the origin.