When a firm is experiencing economics of scale, long run
a. average total cost is minimized,
b. average total cost is greater than long-run marginal cost,
c. average total cost is less than long-run marginal cost,
d. marginal cost is minimized.
e. none of the above
a. average total cost is minimized,
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In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.06). When ? = 0.06 and ?e = 0.03, the unemployment rate is
A) 0.04. B) 0.05. C) 0.06. D) 0.07.
If the absolute value of the price elasticity of demand for tickets to a football game is 2, then if the price increases by 1 percent, quantity demanded decreases by:
A. 4 percent. B. 0.5 percent. C. 1 percent. D. 2 percent.
The economy is in a recessionary gap and a Keynesian economist advocates expansionary fiscal policy. What is a likely reason this economist advocates expansionary fiscal policy?
A) The economist believes the economy is stuck in a recessionary gap and crowding out will be complete. B) The economist believes the economy is stuck in a recessionary gap and there will be no crowding out. C) The economist believes that wages are too flexible and that crowding out will be incomplete. D) The economist believes the AD curve is downward-sloping, the SRAS curve is upward-sloping, and prices are flexible. E) none of the above
The graph above shows the demand and cost conditions facing a monopolist. What price will the monopolist set?
A. $20 B. $40 C. $60 D. $30 E. $50