Most economists support the idea of peak-load pricing on the grounds of
a. fairness in income distribution.
b. efficiency in input usage.
c. equality of opportunity.
d. efficiency in output allocation.
d
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
In order to avoid problems involved with calculating percentage changes over a wide range, economists use the base or midpoint formula to calculate percentage changes when measuring the price elasticity of demand
a. True b. False Indicate whether the statement is true or false
If marginal cost is ______ average cost, then average cost will _____.
A. equal to; decrease B. less than; increase C. greater than; decrease D. greater than; increase
A long-run ATC curve shows:
A. which size firm can capture the lowest costs per unit for an industry. B. what size firms can capture economies of scale by expanding. C. the minimum average total cost possible for every possible size firm across an industry. D. All of these are true.