A constant-cost industry is one in which
A) output increases lead to productivity gains.
B) the marginal product of labor is constant.
C) there is no change in long-run per-unit costs, even as output varies.
D) each firm has a horizontal long-run average cost curve.
C
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What is the natural rate hypothesis?
What will be an ideal response?
Which of the following statements is correct?
A) In the short run, if a firm chooses to produce no output (i.e., shut down) its total costs of production will equal its total fixed costs. B) If a firm decides to shut down, its short-run total costs will equal 0. C) As a firm increases output in the short run, the change in total costs is equal to the change in total variable costs. D) A firm minimizes its total costs of production when average variable cost is minimized.
Which of the following statements is true?
a. Accounting profit usually is greater than economic profit. b. Accountants ignore explicit costs in calculating profit. c. Explicit costs fall as output increases. d. Advertising is an implicit cost. e. Economic profit always increases as output increases.
The reason that the supply curve is upward sloping is
A. diminishing marginal costs. B. increasing average costs. C. diminishing average costs. D. increasing marginal costs.