A manufacturer of towels finds that his returns to scale are constant. Which of the following conclusions can be drawn?
a. The long-run total cost curve is horizontal.
b. The long-run average cost curve is horizontal.
c. The long-run total cost curve is downward sloping.
d. The long-run average cost curve is downward sloping.
B
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A supply curve shows the marginal
A) benefit consumers receive from consuming a good. B) profit businesses earn from selling a good. C) cost of producing the good. D) price paid for a good. E) benefit sellers receive from selling a good.
In 2002, this company was estimated to hold the largest share of the U.S. burger market:
A) McDonald's. B) Burger King. C) Wendy's. D) none of the above.
Cutting the money supply by one-third is predicted by the quantity theory of money to cause
A) a sharp decline in real output of one-third in the short run, and a fall in the price level by one-third in the long run. B) a decline in real output by one-third. C) a decline in output by one-sixth, and a decline in the price level of one-sixth. D) a decline in the price level by one-third.
Which one of the following labor resources will likely have the most inelastic supply schedule in the short run?
a. filling station attendants b. sales clerks c. construction laborers d. dentists