When a firm is at its minimum efficient scale of operation, it produces the
A. minimum rate of output consistent with lowest long-run marginal cost.
B. minimum rate of output at which long-run average cost is minimized.
C. maximum rate of output at which long-run average cost is minimized.
D. maximum rate of output consistent with lowest long-run marginal cost.
Answer: B
You might also like to view...
In the above figure, if the natural monopoly is regulated with an average cost pricing rule and the firm does not inflate its costs, the deadweight loss to society is
A) zero. B) efc. C) ebc. D) gac.
Models that are similar to RBC models but allow for shocks other than productivity shocks are known as
A) DSGE models. B) Keynesian models. C) Solow models. D) Friedman models.
A shortage occurs whenever
a. quantity demanded exceeds quantity supplied at the equilibrium price. b. price is less than equilibrium price. c. quantity demanded is less than quantity supplied. d. goods are scarce. e. some of the people who need the product are not willing and able to buy it at the equilibrium price.
If you were going to evaluate the how much money you will have after ten years of saving $100 per month, which Excel function would help you calculate it?
A. FV B. Profit C. PMT D. Invest