A rise in X-inefficiency:
A. does not affect costs, only the price and quantity.
B. shifts the ATC curve up.
C. shifts the ATC curve down.
D. shifts the ATC curve down or up, depending on the nature of the inefficiency.
Answer: B
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In short-run perfectly competitive equilibrium, which of the following is alwaystrue?
a. Profit equals zero. b. Profit can be negative, zero, or positive. c. Profit can be zero or positive, but not negative. d. Profit is positive, otherwise firms would not produce.
A major Internet service provider decides to spend $70 million to purchase new server equipment. If the marginal propensity to consume is 0.8, the eventual change in GDP will be
a. $40 million. b. $50 million. c. $90 million. d. $350 million. e. $850 million.
Changes in consumption and investment spending due to changes in the real interest rate alter:
A. induced expenditures. B. the money supply. C. autonomous expenditures. D. money demand.
Excess demand in an unregulated market will cause the price of a product to fall.
Answer the following statement true (T) or false (F)