If an industry's long-run per-unit costs decrease as its output increases then
A) the firm's long-run economic profits must be less than zero.
B) the firm is most likely a decreasing-cost industry.
C) the firm is most likely an increasing-cost industry.
D) the firm is most likely a constant-cost industry.
Answer: B) the firm is most likely a decreasing-cost industry.
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Average labor productivity is the
A) amount of workers per machine. B) amount of machines per worker. C) ratio of employed to unemployed workers. D) amount of output per worker.
Imposing a restrictive quota on imported plasma TVs will:
a. increase the price of the plasma TVs and decrease the quantity consumed. b. increase both the price of the plasma TVs and the quantity consumed. c. leave the price of the plasma TVs unchanged but decrease the quantity consumed. d. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports