Entry of new firms in a decreasing-cost industry leads to an upward shift of the LRAC curve.
Answer the following statement true (T) or false (F)
False
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Sunk costs are irrelevant to economic decisions because
A) they are merely opportunity costs rather than monetary expenditures. B) they cannot affect a firm's net revenue. C) they do not appear on financial statements. D) they represent no opportunity for choice.
A cartel usually has a collusive agreement to
A) restrict output. B) boost output. C) lower the price. D) increase the number of firms in the industry.
Refer to Figure 26-7. Suppose the economy is in a recession and no policy is pursued. Using the static AD-AS model in the figure above, this situation would be depicted as a movement from
A) B to A. B) C to D. C) A to B. D) C to B. E) A to E.
In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per sweater for Tetah is
a. $480 b. 480 cookies c. 32 cookies d. 1/32 of a cookie e. 15 cookies