If the minimum points on all the possible short-run average total cost curves become successively lower as quantity of output increases, then
a. the firm should try to produce less output
b. total fixed costs are constant along the LRATC curve
c. there are economies of scale
d. the firm is probably having significant management problems
e. when output is doubled, total costs are doubled
C
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All else equal, a decrease in the supply of labor will shift the labor supply curve to the left and decrease the equilibrium wage
Indicate whether the statement is true or false
The major similarity between monopolistic competition and perfect competition is
A) the shape of the demand curve. B) that both assume many buyers and sellers. C) price equals marginal revenue in each. D) both assume products are differentiated.
Improvements in technology will shift an economy's production possibilities curve
a. inward, then outward. b. outward, then inward. c. outward. d. inward.
Refer to Figure 9.1. If the government establishes a price ceiling of $20, how many widgets will be sold?
A) 20 B) 30 C) 40 D) 50 E) 60