Economies of scale means that
A) the average fixed cost curve slopes downward over its entire range.
B) the four-firm concentration ratio is below 80.
C) the long-run average total cost curve slopes downward over it entire range.
D) the long-run total cost curve slopes downward over it entire range.
Answer: C
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If, in a competitive market, marginal benefit is less than marginal cost
A) the government must force producers to raise prices in order to achieve economic efficiency. B) the output is greater than the equilibrium quantity. C) the output is less than the equilibrium quantity. D) the net benefit to consumers from participating in the market is less than the net benefit to producers.
A monetary policy rule is when the monetary authority:
a. does not commit to future monetary actions. b. often produces a monetary surprise to households. c. commits to future monetary actions. d. always behaves in unpredictable ways.
The price-corrected value for Gross Domestic Product is
A. per capita income. B. real Gross Domestic Product (GDP). C. net national product. D. net Gross Domestic Product (GDP).
If a profit-maximizing firm finds that, at its current level of production, MR > MC, it will
A) earn greater profits than if MR = MC. B) increase output. C) decrease output. D) shut down.