With increasing returns to scale, isoquants for unit increases in output become
A) farther and farther apart.
B) closer and closer together.
C) the same distance apart.
D) none of these.
B
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Explain why the "kinked demand curve" model of oligopoly represents a game theory approach to oligopolistic behavior
What will be an ideal response?
A reduction in the inflation rate would make relative prices
a. less variable, making it more likely that resources will be allocated to their best use. b. less variable, making it less likely that resources will be allocated to their best use. c. more variable, making it more likely that resources will be allocated to their best use. d. more variable, making it less likely that resources will be allocated to their best use.
Samuelson and Solow reasoned that when aggregate demand was low, unemployment was
a. high, so there was upward pressure on wages and prices. b. high, so there was downward pressure on wages and prices. c. low, so there was upward pressure on wages and prices. d. low, so there was downward pressure on wages and prices.
If an American can purchase 40,000 British pounds for $90,000, the dollar rate of exchange for the pound is ________.
A. $0.44 B. $2.25 C. $0.23 D. $2.00