As diseconomies of scale begin to outweigh the economies of scale,
A. the long-run average cost curve begins to slope upward.
B. the long-run average cost curve begins to slope downward.
C. the long-run average cost curve becomes horizontal and continues this way into infinity.
D. the long-run average cost curve is unaffected.
A. the long-run average cost curve begins to slope upward.
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Since the Red Cross supplies 95 percent of the blood in the United States, it can be considered a monopolist. Assume that it, in fact, operates like a monopolist. The Red Cross currently charges hospitals and other users $21 for a pint of blood. In order to increase the supply of blood, the government offers the Red Cross a $10 million, lump-sum subsidy. How much more blood supply will the
subsidy generate? a. about 500,000 pints b. somewhere between 100,000 and 500,000 . depending on demand elasticity c. somewhere between 100,000 and 500,000 . depending on the elasticity of supply d. zero
Jose's restaurant operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10 . In this situation,
a. Jose's restaurant is earning a positive economic profit. b. Jose's restaurant should shut down immediately. c. Jose's restaurant is losing money in the short run but should continue to operate. d. the market price will rise in the short run to increase profits.
If an increase in investment leads to a bigger increase in national income this is called the:
a) Accelerator b) Aggregate demand c) Monetarism d) Multiplier
Use the figure below to answer the following question.
What is the amount of government revenue after the government imposes the excise tax on the market?
A. $16 B. $40 C. $20 D. $32