_______ ensure that resources are allocated to where they are most highly valued

The long-run average cost curve may initially slope downward due to

A) decreasing average fixed costs. B) increasing marginal returns. C) economies of scale. D) All of the above.

A critical assumption in the classical model is that

a. markets are perfectly competitive in the short run b. markets clear in the long run c. markets clear in the short run d. markets are perfectly competitive in the long run e. all variables are expressed in nominal terms