Firms may experience diseconomies of scale when
a. they are too small to take advantage of specialization.
b. large management structures are bureaucratic and inefficient.
c. there are too few employees, and managers do not have enough to do.
d. average fixed costs begin to rise again.
b
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Unlike a perfect competitor, a monopolist faces the market demand curve
Indicate whether the statement is true or false
The __________ level of government accounts for the largest share of health care spending.
A. regional B. state C. municipal D. federal
A 25% decrease in the price of breakfast cereal leads to a 20% increase in the quantity of cereal demanded. As a result: a. total revenue will decrease
b. total revenue will increase. c. total revenue will remain constant. d. the elasticity of demand will increase.
If equilibrium is present in the foreign exchange market and a nation is experiencing a trade surplus,
a. the nation must be experiencing a net capital inflow. b. the nation must be experiencing a net capital outflow. c. the nation's inflation rate must increase. d. the nation's interest rate must increase.