The shape of the short-run average total cost curve is a result of
A) economies of scale.
B) diseconomies of scale.
C) the law of diminishing marginal product.
D) falling profits.
Answer: C
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If the money price of a resource such as oil falls, then the
A) LAS curve shifts rightward. B) LAS curve shifts leftward. C) SAS curve shifts leftward. D) SAS curve shifts rightward.
The decision to make the U.S. income tax system progressive was
A) a positive decision. B) a normative decision. C) a decision that was needed to minimize the excess burden of taxation. D) a progressive decision.
The most oligopolistic industry of those presented in the above table is likely to be industry
A) W. B) X. C) Y. D) Z.
This graph depicts the demand for a normal good.
A movement from A to C in the graph shown might be caused by:
A. an increase in price.
B. a decrease in price.
C. an increase in income.
D. a decrease in income.