Discretionary fiscal policy in the form of an increase in government spending or a decrease in taxes can be used to close an expansionary gap

Declining average total cost with increased production is one of the defining characteristics of a natural monopoly

a. True b. False Indicate whether the statement is true or false

Which of the following is a short-run decision for a firm?

A) downsizing the firm's manufacturing plant B) expanding the firm's distribution network of long-haul freight trucks and smaller delivery trucks C) firing workers D) investing in a new addition to the firm's manufacturing plant