The minimum possible short-run average costs are equal to long-run average costs when
A. the plant is producing at its short-run minimum point.
B. production is at any point on the LAC curve.
C. the long-run curve is at a minimum point.
D. short-run and long-run costs are declining.
Answer: C
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A firm that is not maximizing profits
A) would never be able to operate in the United States. B) must not be owned by stockholders. C) may find it difficult to raise financial capital from external capital markets. D) is likely to face legal prosecution from the Department of Commerce.
As the interest rate increases, the opportunity cost of
a. both c and e are correct b. past consumption decreases c. saving increases d. current consumption increases e. borrowing decreases
Rational ignorance refers to voter-citizens choosing to be uninformed about politics and government on an individual basis because
A) of apathy. B) of ignorance. C) of laziness. D) they believe the benefits of becoming informed are greater than the costs. E) they believe the benefits of becoming informed are less than the costs.
Judging from the table, which of the following is the best estimate for the percentage of discouraged workers in the civilian labor force?
a. 0.2 percent
b. 0.9 percent
c. 1.3 percent
d. 3.5 percent