The key idea of the real business theory is that potential output itself will remain stable over time
Indicate whether the statement is true or false
FALSE
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Explain why the average total cost curve and the average variable cost curve get closer to each other as output expands
What will be an ideal response?
The cartel model of oligopoly assumes that:
A. monopolists sometimes act like oligopolists when they pit divisions of the same corporation against one other. B. oligopolies act as if they are monopolists by setting prices competitively for each member. C. oligopolies act as if they are monopolists by assigning output quotas to each member so that joint profits are maximized. D. oligopolies act as if they are perfectly competitive when there are no barriers to entry.
The long run is a time period that is
A) five years or longer. B) long enough to change the amount of labor employed. C) long enough to change the size of the firm's plant and all other inputs. D) long enough to change the amount of labor employed but not to change the size of the plant. E) None of the above answers describes the long run.
The large influx of immigrant families between 1860 and 1910 caused the total population to grow at a faster rate than the work force
Indicate whether the statement is true or false