Which of the following is true in the short run?
a. MC = ATC at the lowest point of ATC
b. MC = AVC at the lowest point of AVC.
c. When AVC is at its minimum point, ATC is falling.
d. All of the above are true.
d
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In the long run
A) fixed costs tend to be greater than variable costs. B) variable costs tend to be greater than fixed costs. C) all costs are fixed costs. D) all costs are variable costs.
The theory of comparative advantage suggests that a(n):
a. industrialized country should not import. b. country that is not competitive should import everything. c. country specialize in producing goods or services for which it has a lower opportunity cost. d. none of these.
Food production over the past 50 years has increased, partially due to
A. lower inflation rates. B. more farm workers. C. lower interest rates. D. better seeds.
Recall the Application about how technological advances in another country may hurt the United States to answer the following question(s). In this Application, how is the United States hurt when the Chinese gain access to U.S. technology?
A. When China's access to technology causes the U.S. to lose comparative advantage in both high-tech and consumer goods. B. When China's access to technology causes the U.S. to export high-tech goods and import consumer goods. C. When China's access to technology causes the U.S. to import high-tech goods and export consumer goods. D. When China's access to technology causes the U.S. high-tech goods to become cheaper.