Author Question: If government chooses a policy that does not lead to a Pareto improvement, one may say that A) ... (Read 49 times)

joblessjake

  • Hero Member
  • *****
  • Posts: 555
If government chooses a policy that does not lead to a Pareto improvement, one may say that
 
  A) this policy creates only winners.
  B) this policy creates winners and losers.
  C) only poor people benefit from this policy.
  D) this policy only creates losers.

Question 2

Which of the following statements best explains why long-run average cost is never greater than short-run average cost?
 
  A) In the long run, tangency of the isocost and isoquant is attainable. This is not necessarily true in the short run.
  B) In the long run, diseconomies of scale might not occur, but in the short run diminishing marginal returns do.
  C) In the long run, the cost of capital declines because the firm is able to pay down some of its debts.
  D) In the long run, the average cost curve need not be U-shaped, but in the short run it is.


k2629

  • Sr. Member
  • ****
  • Posts: 357
Answer to Question 1

B

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

For a complete list of videos, visit our video library