Economies of scale in the production of a good imply that:
What will be an ideal response?
the long-run average cost of production falls as the scale of operation expands.
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The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?
A) $300 B) $400 C) $700 D) More information is needed to calculate the total fixed cost.
There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:
a. tastes. b. expectations. c. the number of buyers. d. the prices of related goods. e. income levels.
Keynes believed that saving is more responsive to changes in income than to changes in interest rates
Indicate whether the statement is true or false
Which of the following statements describes the long-run effects of global outsourcing?
A) Wages for U.S. workers will decrease but wages in other countries will increase. B) Wages in all countries will remain the same as before the outsourcing. C) Wages and employment will increase globally. D) Wages will increase globally and employment will stay the same.