The long-run average cost curve is tangent to the short-run average total cost curve at the minimum point of the short-run average total cost curve when the:
A. firm is experiencing constant returns to scale.
B. firm is experiencing economies of scale.
C. long-run average cost curve is upward-sloping.
D. long-run average cost curve is downward-sloping.
Answer: A
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Economic freedom
A) is harmed by having too many property rights. B) is created when the nation imposes many regulations on businesses. C) is founded, in part, on the rule of law. D) is not important for nations to grow. E) must come from a democratic government.
The two traumatic events which disrupted China's economic development in the late 1950s and mid-1960s were the _________________________ and the _________________________.
Fill in the blank(s) with the appropriate word(s).
Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?
A. A true flax tax. B. A flat sales tax on consumption purchases. C. A progressive tax on income. D. A fixed federal tax of $5,000 that everyone pays regardless of income status.
If stockholders sell their shares for more than they paid for those shares, the stockholders:
A. Realize a share of equal profits B. Receive a dividend C. Realize a capital gain D. Obtain a mutual fund