Which of the following is an accurate statement about external economies of scale?
a. They involve a rise of market prices.
b. They involve a reduction of input costs.
c. They involve a shift of the MC curve upward.
d. They involve a shift of the ATC curves to the right.
b. They involve a reduction of input costs.
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The marginal benefit of a good or service
A) increases as more is consumed. B) decreases as more is consumed C) remains constant as more is consumed. D) decreases as less is consumed
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for Fruitopia, a soft drink
Which panel describes what happens in the market for Fruitopia when the price of Snapple, a substitute product, decreases? A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
If people use quartz as a medium of exchange, then they: a. have a barter economy
b. are using commodity money. c. are using token money. d. are using legal tender. e. are using fiat money.
A dramatic increase in the birth rate will have what immediate effect on the disposable diaper market?
a. supply decreases now b. supply increases now c. demand decreases now d. demand increases now e. supply and demand stay the same now