The short-run average total cost curve is U-shaped because:
A. average fixed costs decline continuously as output increases.
B. of increasing and diminishing returns.
C. of economies and diseconomies of scale.
D. minimum efficient scale is encountered.
Answer: B
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According to the Application, one reason for the increase in Chinese demand for pecans was
A) the expectation of higher future prices. B) a decrease in income. C) an increase in the price of walnuts, a substitute good. D) an increase in consumer preferences.
As perfectly competitive firms leave a market because they are incurring an economic loss, the price of the good ________ and the economic loss of each remaining firm ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases
Which of the following is a true statement about the length of recessions and expansions in the United States economy?
A) After 1950, the length of expansions were much less than the length of recessions. B) After 1950, the length of expansions were brief and almost nonexistent. C) After 1950, the length of expansions were much longer than the length of recessions. D) After 1950, the length of expansions equaled the length of recessions.
Income distribution in the United States has become more equal since 1980
Indicate whether the statement is true or false