When a firm can achieve economies of scale by expanding, its long-run ATC curve:
A. slopes downward.
B. slopes upward.
C. is flat.
D. Any of these is possible.
A. slopes downward.
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Implicit costs are usually easier to measure than explicit costs
Indicate whether the statement is true or false
Assume a manager of a major league baseball team has a player that is the best pitcheron team the team. However, he decides to to have him play right field instead. It turns out that he is not the best right fielder on the team
How might this manager defend his decision?
Jake loaned Elwood $5,000 for one year at a nominal interest rate of 10 percent. After Elwood repaid the loan in full, Jake complained that he could buy 4 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the $5,000 . From this, we can conclude that the rate of inflation during the year was
a. -4 percent. b. 4 percent. c. 6 percent. d. 14 percent.
Given the following formula for the Taylor rule:Target federal funds rate = natural rate of interest + current inflation + 1/2(inflation gap) +1/2(output gap) if the current rate of inflation is 4%, natural rate of interest is 2%, and the target rate of inflation is 2%, and output is 3% above its potential, the target federal funds rate would be:
A. 4.5%. B. 7%. C. 8.5%. D. 5%.