Taco Bell produces both tacos and burritos because when it does so, Taco Bell experiences
A) economies of scope.
B) decreasing scope of costs.
C) increasing normal profit.
D) economies of scale.
A
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The federal funds rate is not just targeted by the Fed but is determined by the Fed. Market forces are irrelevant
a. True b. False
The equation TR/Q is used to compute
A. marginal revenue. B. demand. C. total cost. D. average revenue.
Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being served by only three or four firms selling this same product. As a result, we would expect
a. an increase in market output and an increase in the price of the product. b. an increase in market output and an decrease in the price of the product. c. a decrease in market output and an increase in the price of the product. d. a decrease in market output and a decrease in the price of the product.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C