Firms in a perfectly competitive industry are producing goods efficiently in the long run if each is producing at the minimum point of the
A) AVC curve.
B) MC curve.
C) LAC curve.
D) AFC curve.
C
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When do firms pay efficiency wages? What is the relationship between moral hazard and efficiency wages?
What will be an ideal response?
Mass production during U.S. industrialization involved using which of the following?
(a) Interchangeable parts (b) Division of labor and specialization (c) The assembly line (d) All of the above
Between two countries, comparative advantage is found by comparing the:
a. relative costs of production in each country. b. absolute costs of production in each country after accounting for inflation. c. labor hours required to produce a bundle of products in each country. d. level of interest rates in each country. e. shipping and transportation costs of each country.
The aggregate demand curve shows
A. the relation between the aggregate quantity of goods demanded and the price level. B. the relation between the real interest rate and output when the goods market clears. C. the demand for goods depending on the relative price of goods compared to financial assets. D. the amount of output that can be obtained given the current production function in the economy.