In general, which form of business organization has the greatest capacity to raise large sums of financial capital?
A) sole proprietorships
B) partnerships
C) limited partnerships
D) corporations
D
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The long-run average cost curve is U-shaped because of which of the following?
A) decreasing marginal returns as more labor is hired B) constant fixed costs as output is increased C) economies and diseconomies of scale D) increasing marginal returns as more labor is hired E) decreasing average fixed costs as output is increased
Refer to Figure 15-17. The dean of the college argues: "I think the course should be priced to maximize the profit the college earns, so these funds can be used to pay some other expenses " How much profit (or loss) will the college make on the course if it charges this price?
A) -$2,592,000 B) -$1,080,000 C) $0 D) $450,000
In the market for French wines, an increase in demand is illustrated by:
A) a movement up the demand curve. B) a movement down the demand curve. C) a shift of the demand curve to the left. D) a shift of the demand curve to the right.
If a firms cuts inputs in half, and output falls by more than half, then there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) decreasing marginal returns.