Long-run average cost of the perfectly competitive firm includes the
a. cost of raw materials per unit of output.
b. opportunity cost of labor per unit of output.
c. opportunity cost of capital per unit of output.
d. All of the above are correct.
d
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Many economists ________ protectionism because it ________ consumers and ________ jobs in domestic industries that use protected products
A) support; benefits; creates B) criticize; unfairly rewards; relocates C) criticize; causes losses to; eliminates D) support; lowers prices for; raises wages for
To say that demand is inelastic means that
A) people do not like the good very much. B) quantity demanded not very responsive to price changes. C) relatively small changes in price lead to relatively large changes in quantity demanded. D) relatively small changes in quantity demanded lead to relatively small changes in price.
Tax preparation services and IRS tax publications can be considered substitutes
a. True b. False
Identify the correct statement
a. Autonomous consumption equals saving when disposable income is equal to zero. b. Saving is equal to consumption when autonomous consumption is zero. c. The savings function always has a positive intercept when autonomous consumption is positive. d. The consumption and saving function intersect each other when disposable income is zero. e. Autonomous consumption is positive even when disposable income is zero.