Does the text suggest that the falling prices in solar power generation come from economies of scale?
What will be an ideal response?
No. The source of the falling cost of solar power generation as described by the text is recent innovations in photovoltaic technology.
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Recent research suggests that the federal minimum wage law
a. clearly causes significant unemployment. b. causes unemployment for teenagers. c. causes unemployment for high wage workers. d. may not cause much, if any, unemployment.
Omega Custom Cabinets produces and sells custom bathroom vanities. Assume that labor is the only input that varies for the firm. The firm has determined that if it hires 10 workers, it can produce and sell 20 vanities per week. If it hires 11 workers, it can produce and sell 22 vanities per week. It sells each vanity for $800, and it pays each of its workers $1,000 per week. Which of the
following is correct? a. For the 11th worker, the marginal profit is $600. b. For the 11th worker, the marginal revenue product is $2,000. c. The firm is maximizing its profit. d. If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.
In the circular flow diagram model:
A. households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses. B. businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households. C. households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses. D. Both (a) and (b) are correct.
The model predicts that a temporary decrease in government purchases causes:
a. an increase in consumption. b. an increase in gross investment. c. a reduction in real GDP. d. all of the above.