Lower input prices in large firms might lead to:
A. upward-sloping marginal cost curves.
B. upward-sloping short-run average cost curves.
C. upward-sloping long-run average cost curves.
D. downward-sloping long-run average cost curves.
Answer: D
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The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the average fixed cost?
A) 500 B) 5Q C) 5 D) 5 + (200/Q) E) none of the above
The velocity of circulation, V, is equal to
A. PQ. B. MQ. C. PQ/M. D. M/PQ.
If an investor starts with dollars and wants to end up with dollars in the future, which of the following is NOT an investment choice that he can make?
A. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and then, buy dollars at the future spot rate B. Buy a dollar-denominated financial asset C. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy the foreign currency D. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy dollars
As the ratio of price to marginal cost decreases, the Lerner index
A) stays the same. B) increases. C) decreases. D) can increase or decrease depending upon the shape of the demand curve.