Which of the following is most likely to be an example of economies of scale?

A. The per-unit costs on Excel Publishing Company's manuals fall because it adopted a new technology after receiving a large order from the government.
B. Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant.
C. The XYZ Co. increased production 25 percent after a 30 percent increase in all inputs.
D. Alpha-Beta Inc. raised its price by 10 percent after a 5 percent increase in production costs.


Answer: A

Economics

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The Glass-Steagall Act of 1933 separated commercial banks from most of their securities business

Indicate whether the statement is true or false

Economics

The self-correcting property of the economy means that output gaps are eventually eliminated by:

A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.

Economics

If the labor market worked efficiently, then an effective minimum wage law would:

A. help those who were employed at that price. B. cause unemployment. C. hold wages higher than the equilibrium price. D. All of these statements are true.

Economics

Marginal utility can:

a. increase positively, but not negatively

b. be positive, negative, or zero

c. decrease, but not become negative

d. be positive or negative, but not zero

Economics