If the long-run average cost curve for the industry is flat what implication does this have for the relationship between the average cost curves for small and large firms?
What will be an ideal response?
If the LRAC curve is flat, small firms and large firms have identical long-run average costs.
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Refer to Figure 3.2. Betty's dominant strategy is
A) North. B) West. C) East. D) Betty has no dominant strategy.
Which tax rates result in zero tax revenue?
A. F and G
B. G and H
C. F and H
D. 0 and 100%
Using the UIP equation, what would happen to the spot rate for euros if the interest rate on euro deposits rises ceteris paribus?
a. The spot rate to purchase euros would rise (dollar depreciation). b. The spot rate to purchase euros would fall (dollar appreciation). c. The spot rate to purchase euros would be unchanged. d. The U.S. Federal Reserve would have to raise U.S. short-term interest rates
Under perfect competition, the supply curve is
A. the marginal cost curve, but only the portion that is downward sloping. B. the marginal cost curve for all price quantity combinations. C. the marginal cost curve, but only the portion that is upward sloping. D. the marginal cost curve, but only the portion that is above the minimum of average variable cost.