Refer to the graphs below. They show the long-run average total cost (LRATC) for a product. For which graph would a firm NOT be experiencing diseconomies of scale?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
A. Graph A
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What is the labor theory of value?
What will be an ideal response?
The characteristic of ease of entry and exit ensures that perfectly competitive firms will be able to earn positive economic profits over the long run
Indicate whether the statement is true or false
Which of the following best defines consumer surplus?
a. the amount that individuals actually paid, minus the amount that they would have been willing to pay b. the amount that a seller is paid for a good minus the seller’s actual cost c. the amount that individuals would have been willing to pay, minus the amount that they actually paid d. when it is impossible to improve the situation of one party without imposing a cost on another
The income effect refers to the ways in which a change in the price of a good alters the effective buying power of one's income
a. True b. False Indicate whether the statement is true or false