Figure 7-14

Of the long-run AC curves in Figure 7-14, which displays increasing returns to scale for all levels of output?
A. 1
B. 2
C. 3
D. 4
Answer: A
You might also like to view...
Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. The probability of nice weather is 60 percent and the probability of bad weather is 40 percent. Trip insurance is sometimes available. If purchased, it allows travelers to delay the cruise until the weather is nice. The amount of money that Mel is willing to pay for trip insurance will be:
A. the same regardless of whether she is risk-averse or risk-neutral. B. positive if she is risk-neutral and negative if she is risk-averse. C. lower if she is risk-averse instead of risk-neutral. D. higher if she is risk-averse instead of risk-neutral.
Which one of the following is TRUE about the effects of fiscal policy?
A. An increase in government spending will increase aggregate demand. B. An increase in government spending will reduce aggregate demand. C. A decrease government spending will increase aggregate supply. D. A tax change does not have any direct or indirect effects on aggregate demand.
What is the opportunity cost of going from point A to point B?
If the wage rate is ________ the value of marginal product, a firm can increase its profit by ________
A) greater than; selling an extra unit of output B) less than; selling one less unit of output C) less than; hiring an extra worker D) less than; hiring one less worker