Constant returns to scale are associated with a:
A. horizontal short-run average cost curve.
B. horizontal long-run average cost curve.
C. downward-sloping short-run average cost curve.
D. downward-sloping long-run average cost curve.
Answer: B
You might also like to view...
Complementary goods are goods people consume together, such as peanut butter and jelly. If the price of peanut butter falls, we predict
A) the demand for peanut butter would increase. B) the demand for jelly would increase. C) the demand for peanut butter would decrease. D) the demand for jelly would decrease.
According to the writer William Gibson, "The future is already here – it's just unevenly distributed." By this he means that:
a. Internet access, for example, is available to some but not to all b. Innovation access is readily available to all c. The low-income countries are catching up to the rich countries d. New technologies spread at an even pace
The existence of stagflation in the 1970s undermined the credibility of demand-management policies
a. True b. False Indicate whether the statement is true or false
In the short run, wages are assumed to be: a. constant
b. sticky. c. inflexible. d. all of the above are true.