In a constant-cost industry, input prices remain constant as:
a. the supply of inputs fluctuates.
b. firms encounter diseconomies of scale.
c. workers become more experienced.
d. firms enter and exit the industry.
d
You might also like to view...
If producers incorrectly set the price of their product too high:
A. a shortage will result. B. a surplus will result. C. equilibrium will result. D. the industry will die out soon.
The consumption function has two components: (1) consumption that depends on the level of income and (2)
a. permanent consumption b. transitory consumption c. autonomous consumption d. automatic consumption e. expected consumption
A buyer's response to a change in income is an example of a "change in demand."
a. True b. False Indicate whether the statement is true or false
The income-expenditure model of real GDP determination is due to the work of
A. Adam Smith. B. John Maynard Keynes. C. Roger Miller. D. Milton Friedman.