Assume the LRAC curve for a particular industry hits its minimum point at a relatively low level of output and then increases, and the demand for industry output is quite large
In this case, consideration of the minimum efficient scale of operation suggest that the market should be served by: A) a large number of small firms to minimize production costs.
B) a small number of large firms to minimize production costs
C) a large number of large firms to minimize production costs.
D) an indeterminate number of firms of indeterminate size to minimize production costs.
A
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When money is used to compare the relative price of an apple and an orange, money is being used as a _______ .
A) medium of exchange. B) store of value. C) measurement of inflation. D) unit of account. E) token of bartering.
Increased liquidity in recent decades has reduced interest rates on which of the following assets (holding constant all other things that affect interest rates)?
A) U.S. government bonds B) bonds issued by large corporations C) business loans D) bonds issued by state governments