A decreasing-cost industry has a downward-sloping
A) long-run average cost curve.
B) long-run marginal cost curve.
C) short-run average cost curve.
D) short-run marginal cost curve.
E) long-run industry supply curve.
E
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What is meant by comparative statics? Assume that a firm wants to set up a factory. It considers four different locations
The rent of the factory space and the time taken to transport the products from each of the locations to the market is shown in the table below. It is also given that the opportunity cost of time is $10 per hour. a) Which is the optimum location? b) If the opportunity cost of time changes to $30 per hour, is there any change in the optimum? Location Time Taken to Transport Products to the Market (hours per month) Rent ($ per month) 1 180 3,000 2 150 3,200 3 100 3,600 4 60 4,100
A tax increase ________ disposable income, ________ consumption expenditure, and shifts the IS curve to the ________, everything else held constant
A) increases; increases; right B) increases; decreases; left C) decreases; increases; left D) decreases; decreases; left