Which of the following statements is true?
a. In the long run, for any output level a firm can select a plant size that will allow it to minimize average total cost.
b. In the long run, the firm is committed to a particular plant size, and can only vary such resources as labor and some material inputs.
c. In the long run, the firm is committed to a particular plant size, and thus cannot vary any input.
d. The long-run average cost curve connects the minimum points on marginal cost curves for different plant sizes.
a
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Which of the following would not shift a market labor supply curve to the right?
a. a decrease in the wage paid to workers in a competing market b. labor-augmenting technology c. a change in worker tastes so that workers want to retire later d. an increase in immigration
Suppose that the government spends more on a missile defense program. What does this do to aggregate demand? How is your answer affected by the presence of the multiplier, crowding-out, taxes, and investment-accelerator effects?
Suppose a company is considering the construction of a new facility. The construction will cost $1 million today and will yield a payoff of $1.7 million in 10 years. Assuming a 5% annual interest rate, which of the following statements is correct?
a. The company should not construct the new facility because the future value of the construction cost is only $1,628,894.63. b. The company should not construct the new facility because the future value of the construction cost is $1,783,267.42. c. The company should construct the new facility because the present value of the future payoff is $1,092,734.95. d. The company should construct the new facility because the present value of the future payoff is $1,043,652.53.
Suppose your state government could undertake some measures that would improve the safety of highways within the state. If the goal is to use resources efficiently, how many of the measures should be undertaken?
a. all of them b. all measures up to the point at which the marginal social benefit from safety improvements equals the marginal social cost c. all measures for which the marginal social benefits from safety improvements are greater than zero d. all measures for which the marginal social benefit from safety improvements is at least as great as what motorists have reported they would be willing to pay