Except for the output level for which short-run fixed capital is long run cost-minimizing, short-run average expenses incurred by the firm are higher than long run average costs.
Answer the following statement true (T) or false (F)
True
Rationale: The long run average cost curve is the lower envelope of short run average expenditure curves (corresponding to different levels of short run fixed capital).
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Demand for luxuries tends to be
a. elastic. b. inelastic. c. indeterminate. d. unit elastic.
Answer the following statements true (T) or false (F)
1. Under conditions of perfect competition, firms sell identical products. 2. Perfect competition assumes free entry into a business or industry. 3. Under perfect competition, market price is determined by market demand and supply. 4. A prime example of perfect competition is the U.S. auto industry. 5. Under conditions of perfect competition, AR always equals MR.
The financial deregulation and financial innovations of the 1970s and 1980s
A) stabilized money demand. B) stabilized velocity. C) destabilized velocity. D) A and C.
Which of the following is least accurate about the US during World War I?
a. The armed forces increased from about 180,000 to 3 million. b. Soldiers were obtained through volunteer army and without a draft. c. Many new agencies were started to regulate prices. d. The US was a formal participant in the war for only 19 months.