Use the following graph showing the long-run supply and demand curves in a perfectly competitive industry to answer the next question.
The curves suggest that this is
A. a decreasing-cost industry.
B. an increasing-cost industry.
C. a constant-cost industry.
D. not possible, because the supply curve is always upward sloping.
Answer: C
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Average variable cost can be calculated using any of the formulas below except
A) ?(TC - FC)/?Q. B) TVC/Q. C) (TC - FC)/Q. D) (TC/Q) - AFC.
The condition that states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of the domestic currency is called
A) the purchasing power parity condition. B) the interest parity condition. C) money neutrality. D) the theory of foreign capital mobility.
Suppose Lydia owns the only lawn-mowing business in the small town of Pleasant Pastures. There are 8 people each week whose lawns she might cut, each with a reservation price given in the accompanying table. Assume that the marginal cost of mowing each lawn is constant and equal to $25. CustomerReservationPriceA$36B$34C$32D$30E$28F$26G$24H$22If Lydia charges the same price to all of her customers, then how many lawns should she mow each week?
A. 2 B. 4 C. 5 D. 3
Real GDP means GDP:
A. valued at prices in a base year. B. that does not change from year to year. C. corrected for changes in quality. D. valued at prices at which goods are actually sold.