1. Every firm will have a U-shaped cost curve in the short-run because a. Every firm faces resource limitations b. Every firm faces rising capital costs during an economic recession c. Of the law of diminishing marginal returns d. Of labor unions

1. Every firm will have a U-shaped cost curve in the short-run because a. Every firm faces resource limitations b. Every firm faces rising capital costs during an economic recession c. Of the law of diminishing marginal returns d. Of labor unions

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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Question

1. Every firm will have a U-shaped cost curve in the short-run because

a. Every firm faces resource limitations

b. Every firm faces rising capital costs during an economic recession

c. Of the law of diminishing marginal returns

d. Of labor unions

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