All else constant, an improvement in technology at each scale of operation would cause:
A) a movement up an industry's LRAC curve.
B) a movement down an industry's LRAC curve.
C) an upward shift of an industry's LRAC curve.
D) a downward shift of an industry's LRAC curve.
D
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The figure above shows short-run cost curves for a perfectly competitive firm. If the price of the product is $8 and the firm does not shut down, the firm's output in the short run
A) will be 0. B) will be between 0 and 10. C) will be 10 or higher. D) cannot be determined without more information.
Lindahl pricing is not necessary for economic efficiency
a. True b. False
The hidden-cost fallacy occurs when
a. A firm considers irrelevant costs b. A firm ignores relevant costs c. A firm considers overhead or depreciation costs to make short-run decisions d. Both a and c
The joint profit maximization solution for a cartel is a attempt to achieve the same result as would a monopolist who owned all the firms in the cartel
a. True b. False Indicate whether the statement is true or false