If a firm finds itself operating in Stage I, it implies that
A) variable inputs are extremely expensive.
B) it overinvested in fixed capacity.
C) it underinvested in fixed capacity.
D) fixed inputs are extremely expensive.
B
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Refer to Scenario 2. The marginal cost of the sixth unit of output is:
A) $1.33. B) $7.50. C) $8.00. D) $45.00.
A deadweight loss occurs in a
A) monopoly. B) perfectly competitive market. C) market in which the market clearing price of a good equals the marginal cost of producing it. D) market in which the market clearing price of a good is below the marginal cost of producing it.
Within the AD/AS model, an unanticipated increase in short-run aggregate supply will cause real output to
a. increase and the general level of prices to fall. b. decrease and the general level of prices to rise. c. increase and the general level of prices to rise. d. decrease and the general level of prices to fall.
One solution to long-run structural problems could involve:
A. moving along the domestic supply curve. B. shifting the domestic supply curve up. C. shifting the world supply curve up. D. shifting the world supply curve down.