Use the following graph to answer the next question.
A firm that has the long-run cost curves shown in the graph above would not be able to ________.
A. exploit economies of scale
B. serve an increasing share of the market at lower and lower unit costs
C. attain lower unit costs by reducing its output level
D. have an entry barrier protecting it from new entrants into the market
Answer: C
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On a straight-line downward-sloping demand curve, the maximum elasticity of demand occurs
A) at its vertical intercept. B) at its midpoint. C) at its horizontal intercept. D) where it intersects the supply curve.
The opportunity cost of any action is
a. irrelevant to economic theory b. limited to the out-of-pocket cost incurred c. the sunk cost plus the markup on materials and labor d. what we gain in the process of consumption e. what is sacrificed to pursue that action
When banking first began, it could be said that paper money was in reality
a. worthless. b. receipts. c. government money. d. fiat money.
Which of the following statements is true?
A) Velocity equals the money supply. B) GDP is larger than the money supply if velocity is greater than 1. C) The money supply must be equal to GDP. D) GDP is always twice the money supply.