After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves
a. True
b. False
B
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Suppose that the cross elasticity of demand for Dell computers with respect to Hewlett Packard computers is 2.1
If Hewlett-Packard lowers its price by 5 percent, other things being equal, what will be the percentage change in the quantity of Dell computers demanded? A) 2.4 percent B) -10.5 percent C) 10.5 percent D) -42 percent
Which of the following statements is true about marginal revenue?
A) If marginal revenue is zero, it means that quantity demanded falls to zero when a firm changes its price. B) Marginal revenue increases as price falls and quantity sold increases. C) If marginal revenue is negative, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price. D) If marginal revenue is positive, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price.
In the 1980s, tax rates were cut, government revenues fell below expectations, and there was a then-historic peacetime deficit
a. True b. False Indicate whether the statement is true or false
If a firm increases production, then its:
A. fixed costs stay the same. B. total costs increase. C. variable costs rise. D. All of these are true.