When comparing short-run average total cost with long-run average total cost at a given level of output,
a. short-run average total cost is typically above long-run average total cost.
b. short-run average total cost is typically the same as long-run average total cost.
c. short-run average total cost is typically below long-run average total cost.
d. the relationship between short-run and long-run average total cost follows no clear pattern.
a
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Which of the following describes that people cannot examine every possible choice available to them but instead use simple rules of thumb to sort among the alternatives that happen to occur to them?
A) self-interest B) bounded rationality C) ceteris paribus D) normative economics
One way in which monopolistic competition differs from oligopoly is that
a. there are no barriers to entry in oligopolies. b. in oligopoly markets there are only a few sellers. c. all firms in an oligopoly eventually earn zero economic profits. d. strategic interactions between firms are rare in oligopolies.