A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because
a. of diseconomies of scale.
b. of economies of scale.
c. of diminishing returns to a fixed factor of production.
d. the principal agent problem is generally less severe for larger firms.
B
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If the marginal product of capital is greater than the rental cost of capital in terms of goods and services, then ________
A) the firm should continue to produce using that same amount of capital B) the firm should add additional capital C) the firm should reduce the amount of capital is using D) diminishing returns have been avoided
If an event is unlikely to occur, which probability is a reasonable estimate?
A) 0 B) 0.23 C) 0.82 D) Not enough information to determine.
Economics is best defined as the study of how individuals decide to use limited resources in an attempt to satisfy unlimited wants
a. True b. False
Refer to the graph shown. An exchange rate of $2.95 per dinar creates excess:
A. supply of dinar that will cause the dinar to lose value, unless dinar are bought by the government. B. supply of dinar that will cause the dinar to lose value, unless dinar are sold by the government. C. supply of dinar that will cause the dinar to gain value, unless dinar are bought by the government. D. demand for dinar that will cause the dinar to gain value, unless dinar are sold by the government.