The shape of a firm's long-run average cost curve is determined by:
a. the degree to which each input encounters diminishing marginal productivity.
b. the underlying nature of the firm's production function when all inputs are able to be varied.
c. how much the firm decides to produce.
d. the way in which the firm's expansion path reacts to changes in the rental rate on capital.
b
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The equilibrium price for a British pound is $1.60. At a price of $1.75 per British pound, there would be excess __________ the dollar and the dollar would __________
A) supply of; appreciate B) supply of; depreciate C) demand for; appreciate D) demand for; depreciate
The long-term pattern of American foreign trade policy from 1789 to 1914 was
(a) protectionist at first, becoming more liberal before 1861, then more protectionist again. (b) liberal at first, becoming more protectionist before 1861, then shifting to greater liberalism as the country's industrialization spread in the later 19th century. (c) free trade after the Civil War, but very protectionist in general before 1861. (d) none of the above.