When an increase of a firm's scale of production leads to higher average costs per unit produced, there is an increasing return to scale.
Answer the following statement true (T) or false (F)
False
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A rationing device is a method used to resolve who gets what of available goods and resources
Indicate whether the statement is true or false
An example of a final good is:
A. chocolate used to make Cocoa Rice Krispies. B. chocolate chips purchased by Nabisco to make Keebler chocolate chip cookies. C. chocolate chips purchased by you to make chocolate chip cookies. D. chocolate chips purchased by a restaurant to make a chocolate chip cookie pie to sell.
If the price of rubber (an input to the production of tires) increases:
A. the supply of tires will decrease. B. the demand for tires will decrease C. the demand for tires will increase. D. the supply of tires will increase.
If a monopsonist's labor supply curve is positively sloped, the marginal factor cost (MFC) will be below the wage rate
a. True b. False Indicate whether the statement is true or false