Suppose that an industry's long-run supply curve is downsloping. This suggests that:
A. it is an increasing-cost industry.
B. relevant inputs have become more expensive as the industry has expanded.
C. technology has become less efficient as a result of the industry's expansion.
D. it is a decreasing-cost industry.
Answer: D
You might also like to view...
In the Keynesian model deviations of output from potential are caused by:
A. fluctuations in aggregate spending. B. fluctuations in average labor productivity. C. changing asset prices. D. technological change.
Fisher's quantity theory of money suggests that the demand for money is purely a function of ________, and ________ no effect on the demand for money
A) income; interest rates have B) interest rates; income has C) government spending; interest rates have D) expectations; income has
Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2
Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the price, P, is A) 30. B) 45. C) 60. D) 90.
Rapid economic growth is important because it
a. makes some people richer b. eliminates scarcity c. makes the unemployment rate zero d. allows the average person to consume more goods and services e. reduces interest rates