An irrigation system is installed on a farm in Idaho. This is an example of which factor of production?

Answer the following questions true (T) or false (F)

1. As output increases, the distance between average total cost and average variable cost increases. 2. In the long run the relevant cost is total cost. 3. If the long-run average total cost curve is downward-sloping, then the firm is experiencing decreasing returns to scale.

The aggregate price level is:

A. a measure of the average price level for GDP. B. measured by the GDP price deflator. C. measured by the CPI. D. All of these statements are true.