Those who favor an active approach to policy and those who favor a passive approach disagree not only on how quickly the government can act but also on how stable the economy basically is

As output increases, AVC approaches ATC because of

A) diseconomies of scale. B) diminishing marginal returns. C) decreasing average fixed cost. D) increasing marginal cost.

If the long-run supply curve is horizontal, we know that this is

A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which some input prices change as firms enter and exit the industry.