Over all levels of output, if a firm's long-run average cost curve declines as output increases, then
A. there should be a large number of firms in the industry.
B. small firms and large firms will have identical average costs.
C. there should be only one firm in the industry.
D. small firms would have lower average costs of production than large firms.
Answer: C
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The amount of a tax paid by the buyers will be smaller the
A) more elastic the demand and the more inelastic the supply. B) more inelastic the demand and the more elastic the supply. C) more inelastic are both the supply and demand. D) more elastic are both the supply and demand.
Which of the following pricing strategies allows a firm to earn economic profit?
A) charging a price equal to the average variable cost of production B) charging a price equal to marginal cost C) price discrimination D) charging a price equal to the average total cost of production
Which of the following will cause a shift in the demand curve of labor?
A) an increase or decrease in the productivity of labor B) an increase or decrease in the demand for the product labor produces C) a decline in the price of a complementary input D) all of the above
During the 2009-2010 debate on the stimulus package, democrats argued primarily for increased government spending. What effect would this have on the value of the multiplier?
a. It would decrease the value of the multiplier. b. It would have no effect on the multiplier. c. It would increase the value of the multiplier. d. The effect is uncertain.