How do decreasing returns to scale affect the shape of the long-run average cost curve?
What will be an ideal response?
When the firm faces decreasing returns to scale, average costs per unit produced rise as the firm's scale of production rises. Thus, the long-run average cost curve would be upward sloping.
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Most economists believe that the best monetary policy target is
A) the money supply. B) an interest rate. C) the discount rate. D) total bank reserves.
If the number of firms producing mouthwash increases and consumer preference for mouthwash increases, the equilibrium price of mouthwash will definitely increase
Indicate whether the statement is true or false
The alternate-section provision was designed to:
a. allow the government to share in increased land values resulting from railroad building. b. encourage private businesses to locate along railroad routes. c. discourage farmers from cultivating crops near railroad routes. d. make railroad stations more accessible to families.
Real wages usually lag behind the increases in labor productivity
a. True b. False Indicate whether the statement is true or false