The minimum efficient scale for a firm is the
a. lowest rate of output at which long-run average cost is at a minimum
b. lowest rate of output at which short-run average total cost is at a minimum
c. lowest rate of output at which short-run average variable cost is at a minimum
d. average of the rates of output at which long-run average cost is at a minimum
e. average of the rates of output at which short-run average total cost is at a minimum
A
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The invocation of beggar-thy-neighbor arguments with respect to industrial policies
A) strengthens the argument for subsidies. B) makes sense if the international Keynesian multipliers exceed unity. C) applies only to rich countries most of whose trade partners are very poor countries. D) weakens the argument for subsidies. E) does not apply to rich countries who can influence relative world prices.
According to real business cycle theory, the primary causes of business cycles are
A) shocks to aggregate demand. B) monetary factors. C) technology shocks. D) waves of self-fulfilling optimism and pessimism.
An economy can produce at any point on or inside its production possibilities frontier, but it cannot produce at points outside its production possibilities frontier
a. True b. False Indicate whether the statement is true or false
The dilemma in a prisoner's dilemma is that:
A. the players would be better off if they both played a dominated strategy. B. only one player has a dominant strategy, but the other player is uncertain about what to do. C. the outcome is random, so players are uncertain about which strategy to play. D. the players may be trapped in a game they don't know how to play.