If a production function is represented as q = L? K?, the long-run average cost curve will be horizontal as long as
A) ? + ? = 0.
B) ? + ? = 1.
C) q > 0.
D) L = K.
B
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If a country produces only two goods, then it is not possible to have a comparative advantage in the production of both those goods
Indicate whether the statement is true or false
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls and aggregate supply rises. d. Aggregate demand rises and aggregate supply rises. e. Aggregate demand falls and aggregate supply falls.
Firms that pool deposits by customers to purchase stocks or bonds are known as:
A. mutual fund companies B. investment banks C. thrifts D. insurance companies
A monopoly sets a market price that is higher than the marginal cost of production. This fact implies that a monopoly's allocation of resources is:
A. unfair. B. inefficient. C. discriminatory. D. excessive.