When a firm's long-run average cost curve is horizontal for a range of output, then that range of production displays
A) increasing returns to scale.
B) constant returns to scale.
C) decreasing returns to scale.
D) constant average fixed costs.
Answer: B
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Pollution permit policies achieve an ________ outcome because ________.
A. efficient; firms that have the highest cost of reducing pollution will have the greatest incentive to purchase permits. B. efficient; firms that have the lowest cost of reducing pollution will be able to pay more for each permit. C. inefficient; wealthier firms can afford to purchase more permits. D. inefficient; the supply of permits is set by the government, and so is perfectly inelastic.
The world output is higher if the countries follow restrictive trade policies rather than free trade
a. True b. False Indicate whether the statement is true or false
To fight recession, the government may
a. decrease aggregate demand, which will also lead to lower unemployment rates. b. increase aggregate demand, which will also lead to higher price levels. c. increase aggregate demand, which will also lead to lower price levels. d. decrease aggregate demand, which will also lead to higher unemployment rates.
If Apple Computer Corporation constitutes a sizeable share of your current stock holdings, the purchase of which of the following stocks would provide you with the greatest reduction in risk?
a. Hewlett-Packard b. IBM c. Dell Computer Corporation d. Wal-Mart