Author Question: If government chooses a policy that does not lead to a Pareto improvement, one may say that A) ... (Read 48 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?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

For a complete list of videos, visit our video library