If the minimum points of 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 LRAC curve.
C. there are economies of scale.
D. when output is doubled, total costs are doubled.
Answer: C
You might also like to view...
If Congress authorized the President to lower tax rates or to initiate spending projects when aggregate demand was inadequate, which consequence could be predicted most confidently?
A) Aggregate spending would be more stable over time. B) Recessions would be less severe. C) Recessions would occur less frequently. D) The political power of the President would increase. E) We would experience a lower rate of inflation.
Nasdaq
a. operates under a private rule b. is run and managed by the SEC c. is an example of a public ordering d. is an example of a public good e. none of the above
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the net nonreserve international borrowing/lending balance and the monetary base in the context of the Three-Sector-Model? a. The
net nonreserve international borrowing/lending balance becomes more negative (or less positive) and monetary base falls. b. The net nonreserve international borrowing/lending balance becomes more negative (or less positive) and monetary base rises. c. The net nonreserve international borrowing/lending balance becomes more positive (or less negative) and monetary base falls. d. The net nonreserve international borrowing/lending balance and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following will not hold true for a competitive firm in long-run equilibrium?
A. P equals AFC. B. P equals minimum ATC. C. MC equals minimum ATC. D. P equals MC.