If a technological change reduced the amount of the variable input needed by a firm to produce a unit of output:
a. its AVC curve would shift down.
b. its ATC curve would shift down.
c. its MC curve would shift down.
d. All of the above would occur.
d
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Use the following graph for a perfectly competitive firm to answer the next question.
If the firm is maximizing profits in the short run, the amount of economic profit per unit is
A. DH. B. EH. C. DE. D. DB.
Which of the following is not a means of financing government spending?
a. Government subsidies b. Personal income taxes c. Printing new money d. Issuing government bonds e. Capital gains taxes
If economies of scale exist for a particular production relationship, long-run average costs will
a. rise. b. fall. c. first rise and then fall. d. be unaffected since there is no direct relationship between the two.
When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:
A. a comparative advantage in production of the product. B. an absolute advantage in production of the product. C. a higher opportunity cost of producing the product. D. no incentive to import the product, regardless of the cost-price conditions for other products.