If a company is producing at a level of output at which the long-run average-total-cost curve reaches a minimum, then the company:
a. is experiencing economies of scale.
b. is operating at its minimum efficient scale.
c. is experiencing increasing returns to scale.
d. will shut down.
e. is experiencing diseconomies of scale.
b
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The figure illustrates the market for hot dogs on Big Foot Island. The producer surplus is ________
A) $240 an hour B) $180 an hour C) $1.20 a hot dog D) $60 an hour
A monopolistic firm operates in two separate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows:
Market A p = 15 - Q; Market B p = 11 - Q The company estimates its total cost function to be TC = 4Q. Calculate: a. quantity, total revenue and profit when the company maximizes its profit and charges the same price in both markets b. quantity, total revenue and profit when the company charges different prices in each market and maximizes its total profit
The difference between exports and imports of goods is the
A) balance of trade. B) balance of payments. C) balance of accounts. D) balance of paying.
Milky Moo and Mega Cow are the only sellers of milk. Milky Moo's supply function is QsMMoo = 12P - 6 at prices above $0.50 and zero at prices below $0.50. Mega Cow's supply function is QsMCow = 9P - 3 at prices above $0.33 and zero at prices below $0.33. At a price of $0.45:
A. Milky Moo is the only supplier of milk. B. Mega Cow is the only supplier of milk. C. both Milky Moo and Mega Cow supply milk. D. neither Milky Moo nor Mega Cow supply milk.