Answer the following questions true (T) or false (F)
1. The long run average cost curve is also known as the planning curve.
2. The long run equilibrium of the firm under conditions of perfect competition will occur at that output level where the product price is equal to both the firm's marginal and average total costs.
3. An isoquant reflects the combination of products that minimizes the cost of production.
1. TRUE
2. TRUE
3. FALSE
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Using the Gordon growth formula, if D1 is $1.00, ke is 10% or 0.10, and g is 5% or 0.05, then the current stock price is
A) $10. B) $20. C) $30. D) $40.
Index funds are usually outperformed by mutual funds that are actively managed by professional money managers
a. True b. False Indicate whether the statement is true or false
The price of milk increases dramatically, causing a 0.5 percent increase in the CPI. The price increase will most likely cause the GDP deflator to increase by
a. more than 0.5 percent. b. less than 0.5 percent. c. 0.5 percent. d. None of the above is correct; this particular price increase will not affect the GDP deflator.
World output of goods and services increases with specialization because
A. Each country's workers are willing to work harder than they did before specialization. B. The world's workers are more educated than before specialization. C. Each country's production possibilities curve shifts rightward. D. The world's resources are being used more efficiently.