A constant-cost industry is one in which:
A. the demand curve is horizontal.
B. the long-run supply curve is horizontal.
C. the short-run supply curve is horizontal.
D. All of these
Answer: B
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Which of the following correctly explains the role of economic agents in a free market?
A) Economic agents set production quotas for sellers in the market. B) Economic agents set prices according to the production cost of each good. C) Economic agents allocate goods to those buyers who need the goods the most. D) Economic agents allocate goods to those buyers who value the goods the most.
Refer to Figure 4-1. Arnold's marginal benefit from consuming the third burrito is
A) $1.25. B) $1.50. C) $2.50. D) $6.00.
The Laffer curve suggests that if tax rates get too _____, the government's tax revenues will _____.
A. high; fall B. high; rise C. low; fall D. low; rise
When a profit maximizing firm produces, they will be producing at that output at which marginal cost = marginal revenue
A. all of the time. B. some of the time. C. on rare occasions. D. none of the time.