When the curve that envelops the series of possible short-run average total cost curves is horizontal, this means that there are:
A. economies of scale.
B. diseconomies of scale.
C. constant returns to scale.
D. diminishing returns.
Answer: C
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In the figure above, the marginal cost of producing a computer
A) increases as more computers are produced. B) stays the same as more computers are produced. C) decreases as more computers are produced. D) is the same as the marginal cost of producing a television set.
Many people believe that the study of economics is focused on money and financial markets. Based on your reading of the chapter, how would you define economics?
What will be an ideal response?
Which of the following is not a component of investment spending?
A) spending by firms on equipment B) the purchase of 1000 shares of corporate stock C) residential construction D) changes in inventories
The Landrum-Griffin Act was designed to
a. protect workers from union abuses and criminal activities b. eliminate racial and sexual discrimination by unions c. require firms to bargain in good faith with unions d. prohibit the union shop e. stop unions from striking in support of other unions' strikes