Which of the following is consistent with long-run equilibrium for a perfectly competitive market?
A. Average variable costs of production are maximized.
B. Economic profits are positive.
C. Average total costs of production are maximized.
D. Maximum technical efficiency is achieved.
Answer: D
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As units of input are added to the production process, the average product
a. rises and then declines. b. declines and then rises. c. remains the same. d. is always greater than the marginal product.
State at least two major benefits of promoting non-governmental organizations in developing countries as sources and conduits of foreign assistance
What will be an ideal response?
If the tax function is T = t0 + t1Y where t1 equals 1/3, and if the marginal propensity to consume out of disposable income is 3/4, then the change in GDP per unit change in t0 (?Y/?t0) will be
a. ? 1. b. + 1. c. ? 1.5. d. ? 2. e. + 1.5.
U.S Postal Service spending is generally not included in total government expenditures
a. True b. False