Comment on the following statement: "The shape of a firm's long-run average cost curve is determined by both external and internal economies (or diseconomies) of scale."
What will be an ideal response?
The statement is false. The shape of a firm's long-run average cost curve is solely determined by internal economies (or diseconomies) of scale. External economies (or diseconomies) of scale shift the firm's long-run average cost curve.
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A firm's marginal revenue product of labor curve is also
A. its labor demand curve. B. its long-run input cost function. C. its total revenue line. D. its marginal cost curve.
Refer to the information provided in Figure 9.7 below to answer the question(s) that follow. 
Figure 9.7 Refer to Figure 9.7. Industry demand is initially D1 and industry supply is initially S1 in this increasing cost industry. If ________, then in the long run the industry will move to point E.
A. supply remains at S1 B. demand decreases to D2 C. supply decreases to S2 D. demand increases to D2
Resale price maintenance is a kind of ________ restraint and it ________ legal.
A) vertical; can be B) horizontal; is never C) vertical; is never D) horizontal; can be
When a monopolist is able to price-discriminate: a. its profits tend to increase and its output tends to fall. b. both its profits and output tend to increase
c. both its profits and output tend to decrease. d. its profits tend to fall and its output tends to increase.