Evidence from empirical studies of long-run cost-output relationships lends support to the:
a. existence of a non-linear cubic total cost function
b. hypothesis that marginal costs first decrease, then gradually increase over the normal operating range of the firm
c. hypothesis that total costs increase quadratically over the ranges of output examined
d. hypothesis that total costs increase linearly over some considerable range of output examined
e. none of the above
d
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Refer to Figure 13-4. What is the area that represents the loss made by the firm?
A) the area P1bcP2 B) the area P0acP2 C) the area P2cdP3 D) the area P0adP3
It has been argued that banks tended not to take full advantage of issuing notes, thereby passing up potential profits because:
a. the profit amounts were small. b. they were not the types of profits conservative bankers wanted to pursue. c. regulations and opportunity costs involved with the issuance itself limited the profits. d. All of the above are correct. e. Only a and c are correct.
Laws, customs, conventions, and other institutional elements that sustain an economy fall under the category of
a. rules of the game b. human capital c. natural resources d. financial institutions e. capital infrastructure
Patrice owns a travel agency. Her accountant most likely includes which of the following costs on her financial statements?
a. wages Patrice could earn giving tennis lessons b. dividends Patrice's money was earning in the stock market before Patrice sold her stock and leased the space for her travel agency c. the cost of utilities for operating the storefront d. Both b and c are correct.