A firm's long-run average cost curve is increasing as output increases over all levels of output. As a result
A. small firms and large firms will have identical average costs.
B. small firms would have higher average costs of production than large firms.
C. there should be only one firm in the industry.
D. there should be more than one firm in the industry.
Answer: D
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The current U.S. average tariff rate is
A) less than 5 percent. B) greater than 10 percent. C) approximately 20 percent. D) over 50 percent.
The account that records foreign investment in the United States minus U.S. investment abroad is the
A) capital and financial account. B) official settlements account. C) current account. D) U.S. official reserves account.
By offering training to workers whose firms laid them off because of competition from foreign firms, the federal government is attempting to reduce
A) unnatural unemployment. B) frictional unemployment. C) structural unemployment. D) cyclical unemployment. E) seasonal unemployment.
Equity contracts
A) are claims to a share in the profits and assets of a business. B) have the advantage over debt contracts of a lower costly state verification. C) are used much more frequently to raise capital than are debt contracts. D) are not subject to the moral hazard problem.