The Negatively-Sloped Part of the Long-Run Average Total Cost Curve

question 33

Multiple Choice

The negatively-sloped part of the long-run average total cost curve is due to which of the following?

• A)Diseconomies of scale.
• B)Diminishing returns.
• C)The difficulties encountered in coordinating the many activities of a large firm.
• D)The increase in productivity that results from specialization.

Understand the assumptions underlying the t-test for two independent samples.

Apply and interpret confidence intervals for the mean difference between two populations.

Understand the concept of degrees of freedom in the context of hypothesis testing.

Distinguish between equal and unequal variances in two-sample t-tests.

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Definitions:

Unemployment Rate

The percentage of the labor force that is unemployed and actively seeking employment.

Short-run Phillips Curve

A visual diagram illustrating the short-term inverse correlation between inflation rates and unemployment rates.

Policymakers

Individuals or groups responsible for making and implementing policies, especially in government and legislative contexts.

Natural-rate Hypothesis

The theory suggesting that there is a specific level of unemployment that exists in an economy that is not eliminated by monetary policy in the long run.