Long run marginal cost curves are increasing for decreasing returns to scale production technologies.
Answer the following statement true (T) or false (F)
True
Rationale: Decreasing returns to scale means it is getting harder and harder to produce more -- implying that each additional unit is costing more and more to produce.
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Retained earnings are
A) the funds held back to pay out dividends. B) the funds used to pay corporate taxes. C) profits not given out to stockholders. D) the reason there is double taxation.
Under the cartel model, each firm produces where
a. marginal cost equals marginal revenue. b. price equals marginal cost. c. the average cost curve is at a minimum. d. price exceeds marginal cost by the greatest amount.
The social and economic environment plays a secondary role when compared to the importance of land, labor, capital, and entrepreneurship
Indicate whether the statement is true or false
If workers expect inflation, and tend to overestimate actual inflation when they negotiate wage increases, the result will be a continuing
a. shift of AD to the left. b. shift of AD to the right. c. recessionary gap. d. inflationary gap.