Decreasing returns to scale and diminishing returns differ in that
a. Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept.
b. Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept.
c. Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept.
d. Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept.
b
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A laissez-faire policy may be an effective antitrust policy if markets are
a. c and d b. d and e c. oligopolistic d. competitive e. contestable
If a coupon bond that pays one hundred dollars at the end of the next three years is worth three hundred dollars, then the interest rate must be
a. one percent b. one hundred percent c. ten percent d. zero percent
Figure 11-3
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In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in the personal income tax as advocated by President George W. Bush in 2001?
A. C1 in graph (a) B. C2 in graph (a) C. C1 in graph (b) D. C2 in graph (b)
Perfectly competitive firms always produce the quantity that minimizes average total cost in the short run.
Answer the following statement true (T) or false (F)