An increase in the price of product B resulted in an increase in the demand for product C. This indicates that products B and C are:
a. Normal goods
b. Complementary goods
c. Inferior goods
d. Substitute goods
d. Substitute goods
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When banks make new loans, the effect on reserves is the same as
A) holding excess reserves. B) expanding capital. C) purchasing securities. D) acquiring deposits.
If your business earns $10,000 in revenues, has explicit costs of $7,000, and implicit costs of $5,000, your economic profit is
A) $2,000. B) -$2,000. C) $5,000. D) $3,000.
Refer to the graph shown. The output range in region c is associated with:
A. constant returns to scale. B. diminishing marginal productivity. C. economies of scale. D. diseconomies of scale.
Diseconomies of scale are reflected in
A. The upward-sloping segment of the long-run average total cost curve. B. A downward shift of the long-run average total cost curve. C. The downward-sloping segment of the long-run average total cost curve. D. The downward-sloping segment of the long-run marginal cost curve.