In some industries, like insurance, both small and very large firms coexist and compete quite effectively in the market. This indicates that the long-run average total cost curve in these industries
a. is "U" shaped.
b. is downward sloping over all levels of output.
c. exhibits constant returns to scale over a wide range of output.
d. exhibits diseconomies of scale beginning at a low rate of output.
C
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Holding all else constant, if the U.S. government restricts capital outflows, then the equilibrium value of the U.S. dollar will:
A. appreciate B. remain fixed. C. depreciate. D. be determined by the Federal Reserve.
If marginal profit is zero, then average profit is at a maximum.
Answer the following statement true (T) or false (F)
When speed boat sales rise, the city of Las Vegas takes in more revenue. The omitted common variable between these outcomes is likely to be:
A. life jacket sales. B. prices of Las Vegas flights. C. childhood obesity. D. increased disposable income.
If a firm that had to pay an explicit rent of $5,000 a month bought its own building, at which point it could rent that building to another firm for $4,500 a month, it faces a lower opportunity cost of occupying the building when it owns it
a. True b. False Indicate whether the statement is true or false