When the quantity of capital increases, then the
A) LAS curve shifts rightward and the SAS curve does not shift.
B) SAS curve shifts rightward and the LAS curve does not shift.
C) SAS curve shifts rightward and the LAS curve shifts rightward.
D) SAS curve shifts rightward and the LAS curve does shifts leftward.
C
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If the present value of all future profit is positive, then
A) the firm should remain operating, even if it earns negative profit in the short run. B) the firm should shut down if it is earning a negative profit in the short run. C) the firm should shut down if it cannot cover its fixed costs in the short run. D) None of the above.
The goals of rate regulation have included the prevention of
A) monopoly profits. B) oligopolistic pricing. C) marginal cost pricing. D) average cost pricing.
The marginal cost curve
a. intersects the ATC at its minimum point. b. intersects the AFC at its minimum point. c. always declines. d. is always S-shaped.
If both the supply and demand curves shift to the right, then we can conclude that there will be
A. an increase in the equilibrium quantity sold and an increase in the equilibrium price. B. a decrease in the equilibrium quantity sold and a decrease in the equilibrium price. C. an increase in the equilibrium quantity sold and a decrease in the equilibrium price. D. an increase in the equilibrium quantity sold and an uncertain effect on the equilibrium price.