The shape of a firm's long-run average cost curve is determined by
a. the degree to which each input encounters diminishing marginal productivity.
b. the underlying nature of the firm's production function when all inputs are able to be varied.
c. how much the firm decides to produce.
d. the way in which the firm's expansion path reacts to changes in the rental rate on capital.
b
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Refer to Figure 13-3. What is the marginal revenue of the sixth unit of output?
A) $4 B) $5 C) $9 D) $54
Refer to the figure above. If this were a voluntary restraint agreement, the welfare costs to the importing country would be
A) $14,000. B) $18,000. C) $38,000. D) $60,000.
A firm's cost of production is affected by changes in
A. the available technology. B. input prices. C. profits. D. both a and b E. both b and c
Refer to the graph above. Which of the following would shift the investment demand curve from ID 2 to ID 3?
A more rapid rate of technological progress Greater inventories of capital goods Lower expected rates of return on investment in capital goods Higher business taxes on capital goods