If an industry's long-run per-unit costs are constant as its output increases then
A) the firm's long-run economic profits must be greater 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: D
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A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $2,000 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192?
A. 0 B. 6 C. 8 D. 10
Answer the following statement true (T) or false (F)
1) About one-half of U.S. electricity is generated using petroleum. 2) Renewable energy sources account for about 50 percent of U.S. electricity generation. 3) The United States is in imminent danger of running out of energy. 4) Renewable natural resources can never be exhausted.
Which of the following items is included in GDP?
A. the value of a medical service B. proceeds for a garage sale of used goods C. purchase of a government bond D. the value of home cooking
Which of the following statements is correct?
A. If poverty was eliminated there would be no reason to study economics. B. Economics is a natural science. C. Economic analysis can be used to explain how societies, but not individuals, make decisions. D. In large measure, economics is the study of how people make choices.