Refer to the graph shown. A firm that produces 900 units of output using the plant size associated with SATC2 minimizes:
A. long-run average total cost only.
B. both long-run and short-run average total cost.
C. short-run average total cost only.
D. neither long-run nor short-run average total cost.
Answer: D
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Referring to Figure 19.1, if the exchange rate is currently 11 pesos per dollar, then we expect the dollar to ________ and the peso to ________
A) depreciate; depreciate B) appreciate; depreciate C) depreciate; appreciate D) appreciate; appreciate
In order to obtain an efficient allocation of resources worldwide
A) countries that have a lot of resources should ship resources to countries that do not have a lot of resources. B) countries that have a lot of resources should not trade since poorer countries cannot compete. C) each country should produce the good they have a comparative advantage in and then trade. D) no trade among countries should occur.
The law of diminishing marginal utility states that as additional units are consumed, satisfaction per unit will decline
a. True b. False Indicate whether the statement is true or false
Models that are similar to RBC models but allow for shocks other than productivity shocks are known as
A. Friedman models. B. DSGE models. C. Solow models. D. Keynesian models.