When a firm is no longer able to reduce its long-run average cost by expanding, it has achieved its minimum efficient scale of production
a. True
b. False
A
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The theory of new Keynesian inflation dynamics suggests that a fall in aggregate demand would
A) immediately raise real GDP, followed by a more sluggish increase in the price level. B) immediately raise the price level, followed by a more sluggish decline in real GDP. C) immediately reduce real GDP, followed by a more sluggish decline in the price level. D) immediately reduce the price level, followed by a more sluggish decline in real GDP.
If the minimum reserve ratio is 20 percent, then $1 of reserves can support a maximum of $10 more in transactions deposits.
Answer the following statement true (T) or false (F)
Table 5.1National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$4,565Exports$740Government purchases of goods and services$1,465Social Security taxes$510Net investment$225Indirect business taxes$520Imports$825Gross investment$865Corporate income taxes$185Personal income taxes$750Corporate retained earnings$45Net foreign factor income$20Government transfer payments to households$690Net interest payments to households$0On the basis of Table 5.1, personal saving is
A. $205 billion. B. $305 billion. C. $1,215 billion. D. $1,130 billion.
It is possible to purchase diplomas from diploma mills. The situation in which the degrees are more important than the knowledge they are supposed to represent is called:
A. accreditation. B. credentialism. C. cretinism. D. diplomacy.