Which curve shows the lowest average total cost at which it is possible to produce each output when the firm has time to change both its labor force and plant size?
What will be an ideal response?
The long-run average cost curve shows the lowest average total cost at which it is possible to produce each output when the firm has had time to change all its inputs.
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In Figure 3-5 above, saving is zero at
A) point J. B) point K. C) point L. D) none of the above because saving is never equal to zero under the conditions described in the graph.
Which of the following best illustrates the concept of a store of value?
a. You are a precious-metals dealer, and you are always aware of how many ounces of platinum trade for an ounce of gold. b. You sell items on eBay, and your prices are stated in terms of dollars. c. You keep 6 ounces of gold in your safe-deposit box at the bank for emergencies. d. None of the above is correct.