When a firm is on the flat portion of its long-run ATC curve,
A. changing its firm size will not affect its total cost per unit.
B. it is capturing the lowest average total costs possible in the industry.
C. it is experiencing constant returns to scale.
D. All of these are possibly true.
Answer: D
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In the circular flow, nonprofit institutions are
a. counted as businesses. b. excluded. c. treated separately. d. counted as households.
A graph with a positive slope indicates that the variables depicted on the axes move in the same directions
a. True b. False Indicate whether the statement is true or false
Well over half of all state and local government expenditures goes towards (1) _____; (2) _____; and (3) _____.
Fill in the blank(s) with the appropriate word(s).
The figure above shows the marginal social cost of generating electricity and the marginal private cost. For 4 billion kilowatts, what is the marginal external cost?
A) $0.12 B) $0.08 C) $0.04 D) $0.00 E) $0.20