Generally, as a movie theater adds more screens its average costs fall. The movie theater can be said to experience
a. declining profit
b. higher prices
c. diseconomies of scale
d. economies of scale
e. diminishing marginal returns
D
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A country's actual output ________ its potential output.
A. can only temporarily exceed B. is always be approximately equal to C. can never fall below D. can never exceed
If a firm makes negative short run profits, it will exit the industry in the long run.
Answer the following statement true (T) or false (F)
The text discusses how graduate teaching assistants can now unionize. Unionization often occurs when employers
A. Offer too many fringe benefits to their employees. B. Have no market power. C. Pay wages above the market wage rate. D. Have monopsony power.
Figure 10-4
In Figure 10-4, if full employment occurs at an output level of 4,000 and the economy is currently at an output level of 5,000 then we can expect a(n)
a.
increase in autonomous consumer spending that shifts the aggregate demand curve to the left.
b.
increase in wages that will shift the aggregate supply curve to the left.
c.
decrease in investment spending that shifts the aggregate demand curve to the left.
d.
decrease in wages that will shift the aggregate supply curve to the left.