In the long run, when an increase in the quantity of output decreases average total cost, this is called:
A. economies of scale.
B. diseconomies of scale.
C. constant economies to scale.
D. minimum average total cost.
A. economies of scale.
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Which of the following statements is correct?
A) Dynamic open market operations are carried out to offset fluctuations in the monetary base. B) Defensive open market operations are carried out to change monetary policy. C) The volume of defensive open market operations is much greater than the volume of dynamic open market operations. D) Defensive open market operations are usually carried out through outright purchases or sales.
In 1950, a phone call at a pay phone cost 5 cents and a first-class stamp cost 3 cents. Today, those prices are 50 cents and 49 cents respectively
What has happened to the price of each good relative to the other? What has happened to the price of each good relative to all other goods?
In this graph, expansionary policy causes ______.
a. equilibrium to shift down along the aggregate demand curve
b. equilibrium to shift up along the aggregate demand curve
c. the aggregate demand curve to shift to the left
d. the aggregate demand curve to shift to the right
In? long-run equilibrium, the perfectly competitive firm will
A) go out of business.
B) produce to the point at which marginal cost is at its minimum.
C) produce to the point at which marginal cost equals average total cost.
D) produce on the upward sloping portion of its ATC curve.