Consider the following statements when answering this question
I. If the cost of producing each unit of output falls $5, then the short-run market price falls $5.
II. If the cost of producing each unit of output falls $5, then the long-run market price falls $5.
A) I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) I and II are false.
C
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The Fed conducts an open market operation and increases a bank's excess reserves by $2,000
Explain the first five rounds of the money creation process if the desired reserve ratio is 25 percent and if people keep no currency outside of the banking system.
Which of the following is more likely to be the price elasticity of demand for the snake bite treatment antivenom?
A. Highly inelastic B. Unit elastic C. Elastic D. Perfectly elastic
Appreciation of the U.S. dollar can be caused by
A. A decrease in the demand for dollars. B. An increase in the supply of dollars. C. An increase in the demand for dollars. D. A decrease in the U.S. interest rate.
The currency or money of the United States, like those of other countries, is:
A. Commodity money B. Intrinsic money C. Token money D. Deposit money