If a firm experiencing "economies of scale" decreases its output, its long-run average cost will decrease
a. True
b. False
B
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Using the above table, evaluate whether this tax is proportional, regressive or progressive. Show all work in arriving at your answer
What will be an ideal response?
If the interest rates in an economy are close to zero, _____
a. there will be an excess demand for loanable funds b. the economy will be likely to fall into a liquidity trap c. expansionary monetary policy will be effective, but not contractionary monetary policy d. contractionary monetary policy will be effective, but not expansionary monetary policy
The amount by which actual output falls short of potential output is called _____
Fill in the blank(s) with the appropriate word(s).
According to the Lucas supply function, if a firm mistakenly perceives that all prices are going ________ because its own output price is going ________, it will ________ its production level.
A. up; up; hold constant B. up; up; increase C. down; down; reduce D. up; down; increase