In a sense, the long-run average cost curve is holding
A) short-run average variable cost curves.
B) short-run marginal cost curves.
C) short-run average total cost curves.
D) short-run total cost curves.
QUESTION 2If A>B and B>C do not imply A>C, where > means preferred to, then preferences are intransitive.
Indicate whether the statement is true or false
QUESTION 3According to the book, Akio Morita (the founder of Sony) drew a long-run average cost curve that was
A) U-shaped.
B) V-shaped.
C) W-shaped.
D) horizontal
QUESTION 4The median voter model and the borda count are different names for the same methods of reaching a group decision.
Indicate whether the statement is true or false
QUESTION 5The long run is often referred to as the
A) planning horizon.
B) market horizon
C) period of time where there is at least one fixed input.
D) none of these choices.
QUESTION 6A house is a private good because it is nonrival and nonexcludable.
Indicate whether the statement is true or false
QUESTION 7The shape of the costs curves may be traced back to
A) the law of diminishing marginal utility.
B) the difference between the short run and the long run.
C) the law of diminishing marginal returns.
D) the fact that all production occurs in the long run.
QUESTION 8An empty core is more likely if the individuals in a group own highly complementary resources.
Indicate whether the statement is true or false
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