Which of the following explains why long-run average cost at first decreases as output increases?
a. diseconomies of scale
b. less-efficient use of inputs
c. fixed costs becoming spread out over more units of output
d. gains from specialization of inputs
d
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The principal-agent problem means that managers must
A) find ways for managers to get people to buy stock in their company. B) devise compensation rules to induce principals to act in the best interest of agents. C) devise compensation rules to induce agents to act in the best interest of principals. D) find efficient agents who will negotiate fair compensation rules for a firm's principal managers.
If Rosa is willing to pay $450 for hockey tickets and has consumer surplus of $175, the price of the tickets is $625
a. True b. False Indicate whether the statement is true or false
If real GDP per person were equal to $1,000 in 1900 and grew at a one percent annual rate, what would be the value of real GDP per person 100 years later?
A. $11,000 B. $13,780 C. $1,100 D. $2,705
Economists infer that a consumer receives more utility from one good than another by
A) giving consumers surveys about the utility they receive from the goods. B) observing the consumer's behavior. C) the logic of the models used. D) means of introspection and speculation.