The above diagram shows the short-run average total cost curves for five different plant sizes of a firm. In the long run the firm should produce output 0x with a plant of size:
A. #3.
B. #2.
C. #4.
D. #1.
Answer: B
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Mark started taking guitar lessons when all his cousins started playing guitar. This is an example of ________
A) peer effect B) moral hazard C) adverse selection D) a pecuniary externality
Which of the following is an antidumping argument in favor of restrictions on foreign trade? a. Foreign producers must be prevented from exporting their goods below cost of production
b. Domestic workers must be protected from the lower wages paid in foreign countries. c. The nation's security demands we ensure an adequate domestic supply of certain strategic goods. d. Do unto others as they do unto you. e. Industries in the early stages of development must be protected from more mature producers.
In the European model the stakeholder plays a less prominent role than in the Anglo-Saxon model
a. True b. False
Which of the following statements is correct?
a. Advocates for drug-interdiction policies that reduce the supply of illegal drugs argue that the demand for illegal drugs may be more responsive in the long run than in the short run. b. The demand for illegal drugs is price inelastic. c. Drug interdiction efforts that reduce the supply of illegal drugs may increase drug-related crimes. d. All of the above are correct.