Suppose that (1) LRATC is minimized at $60 when 30,000 units are being produced, (2) the quantity demanded at a price of $60 is 150,000 units, and (3) there are currently 10 firms producing in the market. Then,
a. we should expect competition to result in a decrease in the number of firms
b. we should expect a natural monopoly to emerge
c. we should expect some existing firms to divide up into smaller firms.
d. the LRATC curve will shift upward in the long run
e. the LRATC curve will shift downward in the long run.
A
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In macroeconomic analysis, a transfer payment is considered a
a. positive tax. b. fixed tax. c. negative tax. d. variable tax.
During the period 2002-2009, U.S. trade deficits:
A. Increased from 2002 to 2006 and increased even faster in the recession of 2007-2009 B. Initially decreased, but then increased significantly in the recession of 2007-2009 C. Increased from 2002 to 2006, but then decreased in the recession of 2007-2009 D. Decreased throughout the entire decade