If a firm experiences gains from specialization as it increases its scale of production, we would expect its long-run average cost curve to be:
A) upward-sloping.
B) horizontal.
C) downward-sloping.
D) vertical.
E) U-shaped.
Answer: C) downward-sloping.
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The percentage change in quantity supplied that results from a 1 percent change in price is known as the:
A. slope of the supply curve. B. cross-price elasticity of supply. C. cross-price elasticity of demand D. price elasticity of supply
Energy Star is a voluntary labeling program designed to identify and promote energy-efficient products to reduce greenhouse-gas emissions. This is an example of a ________ to solve an externality
A) Coasian approach B) Pigouvian approach C) command and control mechanism D) social enforcement mechanism
The additional utility or satisfaction that one derives from consuming one more unit of any good or service is referred to as
A) total utility. B) diminishing utility. C) average utility. D) marginal utility.
The Law of Diminishing Marginal Product is defined as that part of the production function when Total Product declines.
Indicate whether the statement is true or false.