A perfectly competitive firm's short-run break-even output occurs
A) at the minimum point of its average variable cost curve.
B) at the minimum point of its average total cost curve.
C) at the minimum point of its marginal cost curve.
D) at the intersection of its total cost curve and its marginal revenue curve.
Answer: B
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"Learning by doing" results in decreased average costs of production and is illustrated by a downward shift of the firm's long-run average cost curve
Indicate whether the statement is true or false
When the federal government incurs a budget deficit, it will
A) mint more coins and spend them. B) create money out of thin air. C) impose a special tax on all income earners. D) borrow money from the Federal Reserve System by issuing securities. E) borrow money from the public by issuing government securities.