A firm's long-run average cost curve is
A. the envelope of the firm's variable cost curves.
B. the locus of points made up of the minimum point on each short-run average total cost curve when only one input may be adjusted.
C. the locus of points representing the minimum unit cost of producing any given rate of output when all inputs may be adjusted.
D. identical to the lowest short-run average cost curve the firm has.
Answer: C
You might also like to view...
Which of the following is an advantage of earmarked taxes?
a. They are flexible. b. They never lead to overproduction. c. They make it more difficult for politicians to alter the expenditure mix away from their preferences. d. They make it easier for politicians to alter the expenditure mix to achieve economic efficiency.
Milky Moo and Mega Cow are the only sellers of milk. Milky Moo's supply function is QsMMoo = 12P - 6 at prices above $0.50 and zero at prices below $0.50. Mega Cow's supply function is QsMCow = 9P - 3 at prices above $0.33 and zero at prices below $0.33. At a price of $0.45:
A. Milky Moo is the only supplier of milk. B. Mega Cow is the only supplier of milk. C. both Milky Moo and Mega Cow supply milk. D. neither Milky Moo nor Mega Cow supply milk.
If the Fed buys more bonds from the public, then the money supply will:
A. Decrease and the aggregate demand curve will shift to the right. B. Increase and the aggregate demand curve will shift to the right. C. Increase and the aggregate demand curve will shift to the left. D. Decrease and the aggregate demand curve will shift to the left.
Deflation began in the year _____.
