If the LRAC curve for Company A has a clear minimum point without a curved bottom, then Company B will have ________________ if it produces a different number of units.
a. lower costs
b. higher costs
c. lower profits
d. higher profits
b. higher costs
When the LRAC curve has a clear minimum point, with a curved bottom instead of a flat bottom, then any firm producing a different quantity will have higher costs.
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A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $30,000. The CPI was 1.68 in 2005. The 1972 graduate's job paid ________ in nominal terms and ________ in real terms than the 2005 graduate's job.
A. more; more B. more; less C. less; more D. less, less
Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. The central bank increases money growth as a result of an unannounced policy change
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a. a business operations inspection b. an audit c. a financial inspection d. accounting e. fraud