Diseconomies of scale occur
A. only in the long run.
B. because of fixed costs.
C. only in the short run.
D. none of these.
Answer: A
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The slope of a curved line at a particular point is
A. always greater than the slope of a straight line at the same point. B. always smaller than the slope of a straight line at the same point. C. defined as the slope of the straight line representing the average values for the entire curve. D. defined as the slope of the straight line that is tangent to the curve at that point.
Positive externalities tend to create free-rider problems because positive externalities
A) appeal more to extroverts than to people who are reflective. B) are spill over benefits to people who don't pay for them. C) are concentrated in the hands of people living on unearned income. D) arise primarily from government programs.
A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit
A) is $3.20. B) is $4.00. C) is $320. D) cannot be calculated with this information.
If advertising makes demand of a product more elastic, it makes sense for a firm to
a. Decrease the price of the product b. Increase the price of the product c. Leave the price unchanged d. None of the above