The long-run average-total-cost curve connects the lowest cost for each level of output given by the short-run average-total-cost curves
a. True
b. False
Indicate whether the statement is true or false
True
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A firm is producing 2,500 units at its optimal output, with average variable cost per unit of $4 and average fixed cost per unit of $2.50. If sells its output at $8 per unit, total profit is
A. $10,000. B. $3,750. C. $1,500. D. $20,000
The determinants of price elasticity of demand include:
A. availability of substitutes, cost relative to benefit, and scope of market. B. degree of necessity, cost relative to income, scope of market, and adjustment time. C. availability of complements, cost relative to income, and scope of market. D. cost relative to income, scope of demand, and adjustment time.
An economy growing at a steady rate of 3.1 percent per year doubles in size approximately every __________ years
A) 40 B) 23 C) 32 D) 16
Given the marginal-utility-to-price ratio equalization principle, if MU1/P1 > MU2/P2,
a. the consumer should consume more of good 1 and less of good 2 b. the consumer should consume more of good 2 and less of good 1 c. total utility of good 1 is greater than total utility of good 2 d. total utility of good 2 is greater than total utility of good 1 e. the price of good 1 must fall