A firm is experiencing ________ on the upward-sloping portion of a firm's long run average cost curve.
A. diminishing marginal returns
B. decreasing returns to scale
C. increasing returns to scale
D. constant returns to scale
Answer: B
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Define the tragedy of the commons. Give three examples of common pool resources. Briefly explain why common pool resources are subject to overuse
What will be an ideal response?
For which of the following variables should a "two tail" t-test be applied?
A) PA B) I C) PB D) Should be applied for all.
In the short run, a firm will eventually experience rising per-unit costs because of:
a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing returns.
The proponents of adaptive expectations believe that:
a. there will be a substantial time lag before people anticipate the effects of a shift to a more expansionary macro-policy. b. macro-policies that stimulate demand and place upward pressure on the general level of prices will temporarily increase output and employment. c. discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy. d. all of these are true.