Question

If Microsoft is determining whether to build a new plant in southern California or in New Mexico, it is making a(n)_______decision.

a. variable-input
b.long-run
c.short-run
d.immediate-run

Every point on the long-run average cost curve is

a. on a short-run average total cost curve
b.also a minimum point on a short-run average cost curve
c.on a short-run marginal cost curve
d.on a short-run average variable cost curve


For a perfect competitor, marginal revenue equals
a.price divided by average revenue
b.the market price
c.the slope of the demand curve
d.average revenue divided by price


The law of diminishing marginal product shows the relationship

a.between inputs and outputs for a firm in the short-run
b.between accounting and economic profits
c.between short-run and long-run outputs of a firm
d.between inputs and outputs for a firm in the long run