If a profit-maximizing firm's fixed cost of producing widgets falls,
a. its total cost curve is unaffected.
b. its marginal cost curve shifts down.
c. the firm will produce more widgets.
d. the firm's average profit per widget produced rises.
d
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The income earned by the people who sell the services of the factor of production ________ is called ________
A) capital; rent B) entrepreneurship; wages C) land; profit D) entrepreneurship; profit
If money demand decreases due to greater use of credit cards, which of the following would most likely happen under a neutralization policy?
a. The money supply would decrease, real GDP would not change, and neither would the interest rate. b. The money supply would increase, real GDP would not change, and neither would the interest rate. c. The money supply would decrease, real GDP would increase, and the interest rate would decrease. d. The money supply would increase, real GDP would not change, and the interest rate would decrease. e. The money supply would decrease, real GDP would decrease, but the interest rate would not change.
Aggregate supply (AS) refers to:
a. the total quantity of inputs that firms will request and purchase. b. the total quantity of output that firms will produce and sell. c. the smallest quantity of output that firms will produce and destroy. d. the total quantity of inputs that firms will request and waste.
The long-run industry supply curve is made up of the zero-profit equilibrium levels of output as the industry expands due to entry of new firms.
Answer the following statement true (T) or false (F)