When there are diseconomies of scale in production:
a. long-run average total cost declines as output expands.
b. long-run average total cost increases as output expands.
c. marginal cost decreases as output expands
d. none of the above
b
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A firm uses two inputs, A and B. At its optimal choice of input proportions,
A. MRP of A = MRP of B. B. MRPA/PA= MRPB/PB. C. MPP of A = MPP of B. D. All of the responses are correct.
When a good is taxed, the deadweight loss is larger the more elastic are demand and supply
a. True b. False Indicate whether the statement is true or false
In which of the following examples should the first country should trade the named product to the second country?
a. Canada can produce lumber products at a lower opportunity cost than the United States. b. The United States can produce cotton fabric more efficiently than India can, but doing so hurts other U.S. industries. c. Italy can produce leather goods more cheaply than Germany can in the absolute sense. d. Russia can produce more oil than Norway, but it incurs higher production costs than Norway does.
Due to an economic recession, manufacturing firms began implementing layoffs of their workforces.
A. An increase in the price of automobiles will lead to a decrease in the quantity of automobiles demanded. B. Due to process innovations in computer chip manufacturing, the market supply of computers increased. C. Due to an economic recession, manufacturing firms began implementing layoffs of their workforces. D. Anticipating that the benefits would outweigh costs involved, an undergraduate student purchases the course textbook.