If a firm is experiencing constant returns to scale
a. long-run average total cost neither rises nor falls as production increases
b. average fixed cost is zero
c. the increase in average variable cost is exactly offset by a decrease in average fixed cost
d. the decrease in average variable cost is exactly offset by an increase in average fixed cost
e. long-run average total cost is zero.
A
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What is the difference between a recession and a depression?
(A) Unlike a recession, a depression includes high levels of inflation. (B) A recession is more severe than a depression and lasts longer. (C) A depression is a particularly deep recession with high levels of unemployment. (D) A recession is a period of economic growth while a depression is a period of economic contraction.
Which of the following describes the market structure of monopoly?
a. many firms with some control over price, and considerable product differentiation b. many firms with no control over price, producing identical products with no differentiation c. a few firms with some control over price, producing similar products which are close substitutes d. a few firms with no control over price, producing highly differentiated products e. a single firm producing all of the output for the industry