If the minimum efficient scale in toaster production is 500,000 units per year,
a. the average cost of producing 300,000 toasters is greater than the average cost of producing 500,000
b. the average cost of producing 300,000 toasters is equal to the average cost of producing 500,000
c. the total cost of producing 300,000 toasters is greater than the total cost of producing 500,000
d. the firm should not produce more than 500,000 toasters
e. MC exceeds AC at 500,000 toasters
A
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One major difference between the aggregate supply curve and an individual supply curve isthe aggregate supply curve represents:
A. production in the economy as a whole rather than just one good or service. B. production in an entire market rather than just one firm. C. goods and services sold rather than the total actually produced by each firm. D. goods and services produced and actually sold by each firm.
Firms should stop borrowing funds
a. as soon as the bank raises the interest rate. b. when the MRP of borrowed funds is equal to the cost of borrowing. c. whenever the future of the firm looks gloomy. d. if their debts are more than 25 percent of the value of the firm.
If the consumer price index is 120 in 2009 and 139.2 in 2010, then the rate of inflation for 2010 is 39.2 percent
a. True b. False Indicate whether the statement is true or false
________: social costs of imperfect competition
Fill in the blank(s) with correct word