In the above figure, what amount of subsidy per student would government have to provide to colleges if its desired objective was to achieve an efficient level of education, 50 million students per year?

Why are long-run costs always less than or equal to short-run costs?

a. In the long run, technological change can occur, leading to lower costs over time. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. b. In the long run, employees are more productive so the firm's costs will be lower. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. c. In the long run, all inputs are flexible so the firm can minimize all costs. This means that long-run costs will always be less than or equal to short-run costs at the same level of output. d. In the long run, firms can choose how much output to produce based on demand, which will lead to lower costs. This means that long-run costs will always be less than or equal to short-run costs at the same level of output.

Which of the following is likely to lead to a decrease in the demand for tennis balls?

A. An increase in the expected future price of tennis balls. B. An increase in the price of tennis racquets. C. An increase in the price of tennis balls. D. An increase in the price of the rubber used to make tennis balls.