Refer to Figure 13-13. If the diagram represents a typical firm in the market, what is likely to happen to its average cost of production in the long run?
A) It will probably fall since the firm must be cost efficient to remain competitive.
B) It will probably rise since the firm will be producing less than its current amount.
C) It will probably rise since its long-run demand is likely to be higher.
D) It will probably fall since the firm will be selling less than its current amount.
B
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If a British automobile sells for £20,000 and the British pound is worth $1.50, then the dollar price of the automobile is
A) $1.60. B) $12,500. C) $20,000. D) $30,000.
If a demand curve shifts, we know that
A) the price of the good itself is not a factor. B) the price of the good itself is a factor. C) the price of the good and supply are the major factors. D) the price of the good and demand are major factors.
Which of the following would an economist consider to be investment?
A. Boeing building a new factory. B. Oprah buying a $10 million home from a fellow celebrity. C. A stockbroker buying 10,000 shares of Starbucks stock. D. All of these.
If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly, then the total amount of deadweight loss in the industry
A) will increase. B) will decrease. C) will remain unchanged. D) cannot be determined.