Which of the following causes average total cost to rise at high levels of output?
a. diminishing marginal product
b. average fixed costs
c. plant underutilization
d. economies of scale
a. diminishing marginal product
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How much is it?
Which of the following statements is true regarding the expected revenues of auctions with risk-neutral bidders where value estimates are affiliated?
A. English > Second price > Dutch = First price. B. English = First price = Dutch = Second price. C. Second price > English > Dutch > First price. D. First price = Dutch > Second price > English.
Both Economist Flores and Economist Jenkins have been monitoring the cucumber market and have noted that the equilibrium price of cucumbers and quantity of cucumbers sold have risen over the last year. Flores and Jenkins, however, disagree about why
this change has occurred. Flores holds that both supply and demand have increased and that the shift in demand has been greater than the shift in supply. Jenkins, however, argues that while demand has increased, supply has decreased and the shift in supply is greater than the shift in demand. Which economist offers the most feasible theory of why the equilibrium price and quantity of cucumbers have risen? Please provide the best answer for the statement.
The Patient Protection and Affordable Care Act (PPACA) includes the establishment of "insurance exchanges" in each state, the purpose of which is to:
A. Create a monopoly or oligopoly of insurance companies in each state B. Fix insurance premiums, similar to public utilities C. Foster competition among insurance companies D. Nationalize the insurance industry in each state