If an industry's long-run per-unit costs decrease as its output increases then
A) the firm's long-run economic profits must be less than zero.
B) the firm is most likely a decreasing-cost industry.
C) the firm is most likely an increasing-cost industry.
D) the firm is most likely a constant-cost industry.
Answer: B
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Among the factors that have a negative impact on savings in the United States is the
A) tax system. B) fact that colleges give less in financial aid to students whose families have savings. C) structure of our welfare programs. D) all of the above.
Backward induction is a useful tool for:
A. finding an optimal strategy in a sequential game. B. analyzing the decisions in a prisoner's dilemma-type game. C. finding an optimal strategy in a simultaneous game. D. Backward induction is useful in any of these games.
Phillips developed a curve that shows the trade-off between the
A. Natural rate of unemployment and exchange rates. B. Unemployment rate and inflation rates. C. Full employment rate and interest rates. D. Full employment rate and the natural rate of unemployment.
A financial intermediary that sells shares in itself to the public, and then uses the funds to buy a wide variety of financial assets is called a:
A. mutual fund. B. stock exchange. C. commercial bank. D. credit union.