As the confectionary, Mrs. Fields' Cookies, gained popularity in California and decided to expand its operations to Utah, it was able to achieve economies of scale. This means that:
a. property taxes were lower in its new location in Utah.
b. transport and communication systems were more developed in Utah.
c. wages were higher in Utah compared to California.
d. expansion of output and firm size led to specialization among the workers.
e. government policies were more favorable in Utah.
d
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When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. Consider whether the product on the market is inexpensive because its quality is lower than you use d. if it is similar enough, it is justification for you producing it in-house
Government restrictions on the use of an open-access resource
a. may improve efficiency b. will decrease efficiency c. are unnecessary d. contribute to pollution of the resource e. contribute to depletion of the resource
A recessionary output gap is defined to be when:
A. equilibrium aggregate expenditure is below full employment GDP. B. equilibrium aggregate expenditure is equal to full employment GDP. C. equilibrium aggregate expenditure is above full employment GDP. D. government spending is insufficient causing a gap in GDP.
In a perfectly competitive long-run constant-cost industry, an increase in market demand causes:
A. an increase in quantity, no change in price, and no change in profit in the long run. B. an increase in price, quantity, and profit in the long run. C. an increase in quantity, a decrease in price, and no change in profit in the long run. D. a decrease in price, a decrease in quantity, and a decrease in profit in the long run.