In Figure 4.2, the reason that the increase in output from point B to C is much greater than the increase in output from point C to D is that 
A. there is waste.
B. small levels of production are often inefficient and that significant increases in production can occur thereafter at only a small additional cost.
C. it is very difficult and very expensive to increase output once the capacity of the machinery has been reached.
D. it always costs more money to increase output.
Answer: C
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The demand for capital by a firm is based on the demand for the product that the capital produces. This relationship is referred to as
A. cost minimization. B. resource utilization. C. derived demand. D. product demand.
Using a PPC can help to increase a company's
a. efficiency b. underutilization c. losses d. employee theft
An expansionary monetary policy is most likely to produce an inflationary effect with little impact on output when the economy
A. is near full employment and the aggregate supply curve is horizontal. B. is near full employment and the aggregate supply curve is vertical. C. has substantial unemployment and the aggregate supply curve is vertical. D. has substantial unemployment and the aggregate supply curve is horizontal.
A duopoly is
A. An illegal, price-fixing cartel. B. a two-firm oligopoly. C. a two-firm monopoly. D. an identical pair of perfectly competitive industries.