In a decreasing-cost industry, an increase in output will lead to
A) an upward shift in the ATC curve.
B) an upward shift in the MC curve.
C) a reduction in long-run per-unit costs.
D) an increase in long-run per-unit costs.
Answer: C
You might also like to view...
Which of the following could explain a fall over time in the price of the depletable resource bauxite?
A. The productivity of bauxite mines fell. B. New deposits of bauxite were discovered. C. Demand for bauxite increased over time. D. The cost of extraction increased.
If you buy a gift without knowing what a person really wants or needs, you have demonstrated:
A. the incentive problem of gift-giving. B. the necessity-identification problem of gift-giving. C. the knowledge problem of gift-giving. D. the negative trade problem of gift-giving.
Monetary policy has short-run effects on which of the following?
A) the level of output but not its composition B) both the level and composition of output C) only the price level D) only the nominal interest rate, not the real interest rate E) none of the above
Which of the following is not true about the composition of GDP in 2016?
A) The majority of consumer spending is on durable goods. B) Purchases made by state and local governments are greater than purchases made by the federal government. C) Imports are greater than exports. D) Business fixed investment is the largest component of investment.