The short-run aggregate supply curve is horizontal when

A) prices are inflexible and the economy is at full employment.
B) there are unemployed resources and prices do not increase when aggregate demand increases.
C) there are unemployed resources and prices do not decrease when aggregate supply increases.
D) there are no unemployed resources and prices do not increase when aggregate demand or supply increases.

B

Economics

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When long-run average cost decreases as output increases there are definitely

A) increasing marginal returns. B) economies of scale. C) Both answers A and B are correct. D) Neither answer A nor B is correct.

Economics

Suppose the extra cost for a company to advertize for one extra day each week on a local TV station is $1,500. Then, the company should advertize on that additional day if it can generate total revenue of $1,500 each week

Indicate whether the statement is true or false

Economics