The minimum possible short-run average costs are equal to long-run average costs when
A) the plant is producing at its short-run minimum point.
B) short-run and long-run costs are declining.
C) the long-run curve is at a minimum point.
D) production is at any point on the LAC curve.
Answer: C
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The reason why public subsidization of industries in less-developed countries causes slow economic growth is that:
a. when companies face no competition, there is no incentive for them to improve their production. b. too much of the taxpayer's money is spent in these programs. c. consumers tend to develop an aversion for the purchase of subsidized goods and services. d. subsidies tend to create too much competition for products. e. subsidization creates shortage in the product market.
The cross-price elasticity of demand is measured by the
a. change in quantity demanded of one good divided by the change in price of another good b. percentage change in quantity demanded of one good divided by the percentage change in its price c. percentage change in demand for one good divided by the percentage change in income d. percentage change in quantity supplied of one good divided by the percentage change in the price of another good e. percentage change in quantity demanded of one good divided by the percentage change in price of another good