Given the exit rule, where does a firm's long-run supply curve derive from? It is the section of the:
A. MC curve that lies above the ATC curve.
B. AVC curve to the right of its minimum.
C. MC curve that lies above the AVC curve.
D. ATC curve to the right of its minimum.
Answer: A
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An increase in the price level that leads to no expansion of economic activity ________
A) is consistent with classical models B) implies that there has been no change in the money supply C) is a strictly short-run phenomenon D) all of the above E) none of the above
Your grandfather tells you that he earned $7,000/year in his first job in 1961. You earn $35,000/year in your first job in 2018. You know that average prices have risen steadily since 1961. You earn
A) 5 times as much as your grandfather in terms of real income. B) more than 5 times as much as your grandfather in terms of real income. C) less than 5 times as much as your grandfather in terms of real income. D) less than 5 times as much as your grandfather in terms of nominal income.
In the table above, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. Regarding the production of good X
A) country A has an absolute advantage. B) country B has an absolute advantage. C) country A has a comparative advantage. D) country B has a comparative advantage.
Social Security payments:
A. began to be adjusted to 5% above the poverty line in 1987. B. are not adjusted using COLAs. C. are now indexed using the PPI. D. began to be indexed to inflation in 1975.