What are constant returns to scale?
a. cost disadvantages in an output range where LRATC rises as output expands
b. per-unit cost reductions in an output range where LRATC falls as output increases
c. returns in an output range where LRATC does not change as output varies
d. cost savings that occur in an output range where LRATC falls due to low output
c. returns in an output range where LRATC does not change as output varies
You might also like to view...
In a closed economy without the government, income equals:
A) aggregate savings plus aggregate investment. B) aggregate consumption. C) aggregate savings. D) aggregate savings plus aggregate consumption.
The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from all the sodas sold is
A) $0.00. B) $15.00. C) $20.00. D) $1.00. E) None of the above answers is correct.
How would monetary easing by the Bank of Japan affect the value of the yen?
A) It increases it since more people will take out loans at the low interest rates. B) It reduces it since it reduces demand for yen since Japanese interest rates are now lower. C) It increases it since it increases demand for yen since Japanese interest rates are now higher. D) It reduces it since the supply of yen on the foreign exchange market is now lower.
A short run equilibrium:
a. Will be at a greater output level than the natural level of real output. b. Will be at the natural level of real output c. Will be at a smaller output level than the natural level of real output. d. Short-run equilibrium could be at any of the above levels of output.