The long-run average cost curve shows
A) the average cost of producing where diminishing returns are not present.
B) the plant size or scale that the firm should build.
C) the lowest average cost of producing every level of output in the long run.
D) where the most profitable level of output occurs.
C
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A currency appreciation should
A. reduce net exports and therefore increase aggregate demand. B. raise net exports and therefore decrease aggregate demand. C. reduce net exports and therefore decrease aggregate demand. D. raise net exports and therefore increase aggregate demand.
Are business inventory changes always planned? Give an example to support your argument
When network externalities are present, the market demand for the good in question becomes:
A. less elastic. B. more elastic. C. unit elastic. D. perfectly inelastic.
Suppose that the price elasticity of supply is 0.8 and the price increases by 10%. We would predict:
A. an 8% increase in quantity supplied. B. a 12.5% increase in quantity supplied. C. a 0.8% increase in quantity supplied. D. a 1.25% increase in quantity supplied.