y curves applicable to shorter periods of time tend to b b r

y curves applicable to shorter periods of time tend to: b b reresented by horizontal lines parallel to the quantity axis. be more inelastic than supply curves that apply to longer periods of time. d. be more th e Diseconomies of scale: elastic than supply curves that apply to longer periods of time. ave a price elasticity of supply that is approximately equal to 1 occur only in the short run. production increases 31. b, occur when at least one resource is fixed and unit costs decrease as the quantity of C. occur when at least one resource is fixed and unit costs increase as the quantity of production increases represented by the upward-sloping portion of the short-run average-total-cost curve. e.) occur when all resources are variable and unit costs increase as the quantity of production increases. Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as a. complements b. substitutes c. inferior goods d. normal goods e. luxurious goods 33. When the cross-price elasticity of demand is a large positive number, one can correctly conclude that: a. the goods are normal goods. b. the goods are inferior goods. c. the goods are substitutes. d. the goods are complements. e. total revenue will increase when the price increases. 34. At its minimum point, the average-total-cost curve is intersected by the: a. average-fixed-cost curve b. average-variable-cost curve. c. total-fixed-cost curve. total-variable-cost curve. e. marginal-cost curve The price elasticity of demand depends on how readily and easily consumers can switch their purehases from one product to another. False whether the statement is true or false ate total cost 1. es economies of scale throughout it will have a horizontal long-run average 2. If a firm experienc

Solution

30) C because in the short run supply cannot be increased due to limitations on scale of production

31) B as LRATC slopes upwards when quantity is increased

32) C inferior goods are the ones that are demanded less when income is increased.

33) C When CPE is positive, it implies that a change in price of a product by a given % increases the quantity demanded of its substitute by a certain % so that CPE becomes positive

34) E