At every output level, a firm's short-run average cost (SAC) equals or exceeds its long-run average cost (LAC) because
A) diminishing returns apply in the short run.
B) returns to scale only exist in the long run.
C) opportunity costs are taken into account in the short run.
D) there are at least as many possibilities for substitution between factors of production in the long run as in the short run.
E) none of the above
D
Economics
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There is no way that externalities can be corrected.
Answer the following statement true (T) or false (F)
Economics
Tariffs and quotas are effective in protecting industry
A. but at very high cost per job saved. B. and at very low cost per job saved. C. but have not saved any jobs in the industries. D. and do not distort the economy in the process.
Economics