Assume the short-run average total cost for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will:
A. have a positive slope.
B. have a negative slope.
C. be perfectly horizontal.
D. be perfectly vertical.
Answer: B
You might also like to view...
In the figure above, if the market is unregulated, the output will be
A) zero. B) 50 units. C) 150 units. D) 250 units.
Food stamps provided by the U.S. Department of Agriculture are an example of
A) a positive externality. B) a private subsidy. C) vouchers. D) an external benefit.
One of the ugly stepsisters argues that she, rather than Cinderella, should go to the ball because she will derive more utility from it than Cinderella. An economist would: a. agree, since the ugly stepsister's reasoning is sound
b. want to know how much utility each will receive from attending the ball in order to determine which woman should attend. c. point out that making interpersonal utility comparisons is not possible. d. ask how many balls each woman has attended in order to calculate the marginal utility that each would derive from attending, and then decide who should go to the ball.
As a percentage of GDP (total output), U.S. exports are:
A. about 20 percent. B. lower than in some other industrial countries, including Germany and Canada. C. less today than they were in the 1970s. D. the highest in the world.