Author Question: If the minimum points of all the possible short-run average total cost curves become successively ... (Read 48 times)

james0929 · **on:** Jun 30, 2018

If the minimum points of all the possible short-run average total cost curves become successively lower as quantity of output increases, then:
a. the firm should try to produce less output.
b. total fixed costs are constant along the LRAC curve.
c. there are economies of scale.
d. the firm is probably having significant management problems.
e. when output is doubled, total costs are doubled.

Question 2

The global financial panic in September 2008 that led to a sharp fall in business investment spending and consumer spending can be viewed as:
a. a sharp decrease in aggregate supply.
b. a sharp decrease in aggregate demand.
c. a sharp decrease in both aggregate supply and aggregate demand.
d. a modest increase in aggregate supply.
e. a modest increase in both aggregate demand and aggregate supply.