A downward-sloping portion of a long-run average total cost curve is the result of:
A. economies of scale.
B. diseconomies of scale.
C. diminishing returns.
D. the existence of fixed resources.
Answer: A
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A. 5.0 B. 1.0 C. 2.5 D. 4.0
Which of the following conditions would definitely cause a perfectly competitive company to shut down in the short run?
A) P < MC B) P = MC < AC C) P < AVC D) P = MR
How much pollution should be cleaned up can be found where the marginal benefits of additional reduction of pollution _____.
a. is less than the marginal cost of reducing the additional pollution. b. equals the marginal cost of reducing the additional pollution. c. equals the average cost of reducing the additional pollution d. is greater than the marginal cost of reducing the additional pollution.
Which of the following decreases if the U.S. removes an import quota on computer components?
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