The long-run average cost (LRAC) curve is based on a group of:
a. short-run average cost (SRAC) curves.
b. accounting profit levels.
c. competitive firms.
d. costs incurred when output is zero.
a. short-run average cost (SRAC) curves.
The long-run average cost (LRAC) curve is based on a group of short-run average cost (SRAC) curves, each of which represents one specific level of fixed costs.
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How feasible would it have been for the U.S. president and/or Congress to use fiscal measures to combat the 1990–1991 recession?
What will be an ideal response?
If two steel firms merge, the merger is described as
a. a horizontal merger b. a vertical merger c. a conglomerate merger d. either a vertical or conglomerate merger depending on whether the oligopoly is balanced or unbalanced e. either a vertical or conglomerate merger depending on the number of steel firms in the steel industry
Economists collect data on prices in every country and develop an index that describes the overall difference in prices between countries called the:
A. purchasing power parity index. B. price parity purchasing index. C. consumer price index. D. consumer purchasing power index.
Recall the Application about the lack of property rights in Peru, and why clear property rights are important for economic growth in developing countries, to answer the following question(s). According to this Application, clear property rights:
A. are important for economic growth in developed nations, but not in developing nations. B. hinder economic growth in developing nations. C. have no impact on the economic growth of developed nations. D. are important for economic growth in developing and developed nations.