You would expect that your firm is experiencing decreasing returns to scale if
a. Long run average costs increase with output
b. Long run average costs decrease with output
c. Long run average costs are constant with respect to output
d. None of the above
a
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Which of the following pricing practices, if proved, would prove a firm engaged in predatory pricing?
A) The firm sets prices below marginal cost per unit. B) The firm sets prices below sunk cost per unit. C) The firm sets prices below total cost per unit. D) The firm sets prices low enough to drive all its competitors out of business. E) None of the above would prove predatory pricing had occurred.
In the above figure, the movement from point C to point A is the result of
A) a decrease in the price of coffee. B) an increase in the price of coffee. C) a decrease in the price of gasoline. D) an increase in the price of gasoline.
The opportunity cost of producing more of one good on a production possibilities frontier is
A) a dollar amount. B) a ratio of quantities. C) a ratio of prices. D) equal to the area inside the production possibilities frontier. E) a theoretical concept which cannot be measured.
Monetary policy is controlled by the U.S. Congress
Indicate whether the statement is true or false