A perfectly elastic, long-run market supply curve is most likely to be achieved in
a. a price-taker industry.
b. a constant cost industry.
c. an increasing cost industry.
d. a price searcher industry.
B
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The __________ gives loans to medium-income, creditworthy countries, and the ________ gives aid to poorer countries.
A. IDA; UNDP B. IDA; IBRD C. IBRD; IDA D. UNDP; IBRD
The relationship between the marginal propensity to consume and the marginal propensity to save is such that
a. MPC – MPS = 0. b. MPC + MPS = 1. c. MPC – MPS = 1. d. MPC = 1/MPS.
If unit costs increase as the quantity of production increases and all inputs are variable, then a firm is experiencing
A) constant returns to scale. B) economies of scale. C) diseconomies of scale. D) falling economies of scope.
The money supply in an economy increases when, other things equal, _____
a. the government surplus rises b. the amount of government borrowing rises c. tax revenues increase d. government spending increases e. the government deficit falls