Long-run average cost is never greater than short-run average cost because in the long run,
A) capital costs equal zero.
B) the firm can move to the lowest possible isocost curve.
C) wages always increase over time.
D) wages always decrease over time.
B
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Suppose the base reference period is 1982-1984. If your nominal wage rate is $8.00 per hour when the CPI is 180, what is your real wage rate in 1982-1984 dollars?
What will be an ideal response?
A tax on a good causes the size of the market to increase
a. True b. False Indicate whether the statement is true or false
How does an economist compare the standard of living in two different countries?
(A) By measuring physical capital. (B) By looking at the quality of life. (C) By seeing how the GDP is distributed. (D) By comparing real GDP per capita.
Assume that investment does not depend on the interest rate. A reduction in the money supply will cause which of the following for this economy?
A) no change in the interest rate B) no change in output C) a reduction in investment D) an increase in investment