Suppose that a firm's long-run average total costs of producing custom wooden picnic tables is $300 when it produces 10,000 tables and $325 when it produces 11,000 tables. For this range of output, the firm is experiencing
a. economies of scale.
b. constant returns to scale.
c. diseconomies of scale.
d. specialization.
c
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An investor wishing to minimize the risk of capital losses as a result of changing interest rates should avoid
A) U.S. savings bonds. B) U.S. Treasury notes. C) U.S. Treasury bills. D) U.S. Treasury bonds.
One effect of government mandating participation in the auto insurance market is it leads to:
A. lower premiums for all participants. B. the collapse of the market. C. higher premiums for all participants. D. free coverage for some participants.
Fundamental factors contributing to the pace of economic development are a? well-defined system of _______ ______, training and __________, allowing new generations of companies and industries to ________ older? generations, and promoting an open economy by allowing ___________ _________.
Fill in the blank(s) with the appropriate word(s).
If production costs increase, the price level will rise.
Answer the following statement true (T) or false (F)