If a firm is experiencing constant returns to scale
a. long-run average total cost neither rises nor falls as production increases
b. average fixed cost is zero
c. the increase in average variable cost is exactly offset by a decrease in average fixed cost
d. the decrease in average variable cost is exactly offset by an increase in average fixed cost
e. long-run average total cost is zero.
A
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Use national demand and supply curves to show (a) the incentives for trade to begin between nations. (b) the effect on the likely pattern of trade of a change in technology in A that causes A's national supply curve to shift out
(c) the effect on the likely pattern of trade of a change in tastes in B in favor of good S.
While limited in their practical applications, the real value of the Pareto criteria is in allowing the public interest to be judged without making interpersonal utility calculations
a. True b. False
The substitution effect of a wage decrease in the work-leisure model results in the worker choosing to
a. work less than before. b. work more than before. c. possibly work more or less than before. d. work more with a higher level of consumption.
When a firm sells products at lower prices to foreign purchasers, it is known as:
a. international dumping. b. restraint of trade. c. price gouging. d. reciprocal dumping.