Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the
A) demand for Dell computers increases.
B) demand for Apple computers increases.
C) demand for Apple computers decreases.
D) supply of Dell computers increases.
E) demand for Dell computers decreases.
C
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The table above shows three production methods to produce 100 automobiles per day. Which of the three methods is technologically efficient?
A) Method A only B) Method B only C) Method C only D) Method A, B and C are all technologically efficient.
Suppose that there is a current account deficit of $250 billion and a capital account surplus of $260 billion. It may be concluded that the
A) overall balance of payments is +10. B) overall balance of payments is -10. C) official reserve transaction account balance is +10. D) official reserve transaction account balance is -10.
A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and rent $250,000/month. If the firm produces 1,000,000 units a month, the total fixed costs equal
a. $250,000 b. $50,000 c. $20,500 d. $30,000
When a firm experiences declining long-run average total costs as it produces more output, there are
A. increasing marginal returns to variable inputs. B. diseconomies of scale. C. constant returns to scale. D. economies of scale.