The flat portion of the long-run average total cost curve is a result of:
a. economies of scale
b. diseconomies of scale.
c. constant returns to scale.
d. diminishing marginal returns.
c
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Use the following table to answer the question below.Dave's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn01600320201202024040804016060406080800800The terms of trade for 1 pound of green beans must lie between ________ and ________ pounds of corn.
A. 1/4, 1 B. 1/4, 1/2 C. 1, 4 D. 2, 4
Other things constant, if domestic consumers purchase fewer foreign goods at each level of GDP, in the short run
A. foreign countries' GDP will rise. B. GDP will fall. C. GDP will rise. D. there will be no change in GDP in this country.
If it is impossible or very costly to prevent someone from benefiting from a good even if the person does not pay for it, the good is
A) nonrival. B) nonexcludable. C) pure. D) rival.
A monopolistically competitive firm can increase its profits beyond the long-run equilibrium break-even level by deliberately lowering its price to force some of its competitors out of the market
Indicate whether the statement is true or false