If factor prices decrease:
a) a firm will move down along its long-run average cost curve only.
b) a firm will move down along both its long-run and short-run average cost curves.
c) both the long-run and short-run average cost curves will shift downward.
d) there will be no change in the cost curves in the long run.
e) there will be a downward shift in the long-run average cost curve but not in the
short-run average cost curve.
Ans: c) both the long-run and short-run average cost curves will shift downward.
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Exhibit 7-12 Marginal revenue and cost per unit curves
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As shown in Exhibit 7-12, if the price is OD, the firm's total revenue at its most profitable level of output is:
A. OZID. B. OYHD. C. OXLD. D. OYFB.
In economics, the demand for a good refers to the amount of the good that people
a. Will buy at alternative income levels b. Need to achieve a minimum standard of living. c. Will buy at various prices d. Would like to have if the good were free