The minimum efficient scale of a firm:
A. is the smallest level of output at which long-run average total cost is minimized.
B. is in the middle of the range of constant returns to scale.
C. occurs where marginal product becomes zero.
D. is realized somewhere in the range of diseconomies of scale.
Answer: A
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The demand deposit multiplier is always less than 10
a. True b. False
With increasing returns (falling average costs), as the remaining firms expand, their demand curves become _______________ due to foreign competition, and firms must _______________.
a. steeper; raise prices b. flatter; lower prices c. flatter; raise prices d. steeper; lower prices
To compare the standard of living of one country to another, economists use:
A.) Per capita GDP. B.) Real GDP. C.)Nominal GDP. D.) Output per worker.
After the Great Depression, until 2008, economic downturns:
A. disappeared. B. became shorter. C. continued more or less as they had prior to the Depression. D. became longer.