Exhibit 6-16 Long-run average cost curves
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In Exhibit 6-16, which firm's long-run average cost curve experiences constant returns to scale between 2 and 5 units?
A. Firm A.
B. Firm B.
C. Firm C.
D. Firms A and C.
Answer: B
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Suppose the world price of widgets is $5 each. If a widget-importing country imposed a $2 per widget tariff, what price would that country's consumers pay for widgets?
A) $10 B) $7 C) $5 D) $3 E) A price that is greater than $5 and less than $7
As wealth decreases, which of the following is likely to account for a larger fraction of a saver's portfolio?
A) corporate stock B) corporate bonds C) U.S. government securities D) checking account balance
A rise in confidence is associated with higher consumption and investment demand, and leads to:
a. a downward shift in the AD curve. b. an inward shift in the AD curve. c. an outward shift in the AD curve. d. an upward shift in the AD curve.
If the price of tofu falls, the quantity of tofu demanded will increase, but the demand curve for tofu will remain unchanged
Indicate whether the statement is true or false