The industry represented by the graph above where S1 and S2 are short-run supply curves, D1 and D2 are short-run demand curves, and LRS is the long-run supply curve can be said to be:
A. an increasing-cost industry.
B. an average-cost industry.
C. a decreasing-cost industry.
D. a constant-cost industry.
Answer: A
Economics
You might also like to view...
In the savings function S = -725 + 0.25y, 0.25 is the
A) MPS. B) slope of the consumption function. C) MPC. D) vertical intercept of the savings function.
Economics
Refer to the diagram. If the full-employment level of GDP is B and aggregate expenditures are AE 1 , the:
A. inflationary expenditure gap is BC.
B. recessionary expenditure gap is BC.
C. inflationary expenditure gap is zero.
D. inflationary expenditure gap is ei.
Economics