As a firm attempts to increase its production, its long-run average costs eventually rise because of
A) the law of diminishing returns.
B) diseconomies of scale.
C) fixed capital.
D) insufficient demand.
B
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The Sherman Act and the Clayton Act were passed into law more than 100 years ago. What characteristic of each of these laws enables them to remain applicable in today's modern economy?
What will be an ideal response?
Surpluses cause prices to fall while shortages cause prices to rise
a. True b. False Indicate whether the statement is true or false
Which of the following is true? a. Economists assume that there are no private property rights in a free market
b. A free market is also known as a fettered market. c. A voluntary transaction means that all parties to the transaction must expect to benefit. d. People always receive goods and services at a discounted price in a free market. e. An economic growth is represented by an inward shift of the production possibility curve.
When voluntary trade takes place,
A. both parties can benefit from the transaction. B. one party can benefit at the expense of the other. C. neither party can benefit from trade. D. both parties can benefit but only if the government regulates the transaction.