The average cost curve
a. is the vertical summation of the AFC and the AVC curves.
b. lies below the AVC curve.
c. lies below the AFC curve.
d. is the vertical summation of the MC and AVC curves.
a
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In a closed economy, what is the relationship between saving and investment?
A) Saving is greater than investment. B) Investment may be greater or smaller than saving. C) Investment is greater than saving. D) Investment is equal to saving.
Activists believe that ________
A) frictions to the self-correcting mechanism of markets prevent prices and wages from being very flexible B) it takes a very long time to reach the long run C) Keynes was right with his statement "in the long-run, we are all dead" D) all of the above E) none of the above
The monopolistic competitor produces a ________ output than the perfect competitor, charges a ______ price, and in the long run, earns __________ profit.
Fill in the blank(s) with the appropriate word(s).
According to the theory of efficient markets:
A. investors use rules of thumb to make choices about which stocks to buy and sell. B. investors are able to use forecasts based on the dividend-discount model to generate above- average returns. C. the stock price should remain constant. D. a portfolio manager who charges no commission should not, on average, outperform an individual investor with access to the same funds.