Economies of scale yield
a. declining average cost as output increases
b. declining marginal cost as output increases
c. declining total cost as output increases
d. diminishing average returns as output increases
e. increasing marginal revenue as output increases
A
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According to this Application, a bank will be required to develop an analytical model to determine what would happen if there was a ________ change in economic conditions, such as a large ________ in unemployment
A) positive; decrease B) negative; decrease C) positive; increase D) negative; increase
The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity of ________ units is inefficient because ________
A) 8; marginal benefit exceeds marginal cost B) 8; marginal cost exceeds marginal benefit C) 10; marginal cost exceeds marginal benefit D) 10; marginal social benefit exceeds marginal benefit E) 10; marginal external benefit exceeds marginal social benefit
Suppose that the federal funds rate and the discount rate are equal initially at 3%. If the discount rate is then lowered to 2.5%, to whom will a bank be more likely to go for a loan: the Federal Reserve or another bank? Explain your answer in detail, and be sure to mention the impact that this situation would have on the money supply
What is the union wage gap if the average union salary is $92,000 while the average nonunion salary is $80,000?
A. 13% B. 15% C. 87% D. 125% E. 10%