Author Question: The long-run average cost curve connects the lower part of the short-run cost curves because: A) ... (Read 103 times)

Hungry! · **on:** Jun 29, 2018

The long-run average cost curve connects the lower part of the short-run cost curves because:

A) prices of inputs are less when acquired for a longer time period.
B) in the long run, firms have more flexibility to change input combinations.
C) specialization of inputs increases productivity only in the long run.
D) the firms earn positive profits in the long run.

Question 2

If bank depositors in the U.S. suddenly decided to withdraw in currency everything in their checking accounts, commercial banks would

A) be better off because their legally required reserves would decline.
B) be unable to meet their demands and would become insolvent.
C) borrow the required Federal Reserve notes to meet the requests for currency.
D) give them the currency held in their vaults as backing for the checking accounts.
E) refuse to honor their requests for 30 days.