Suppose that when a firm increases output by 50%, long-run total cost increases by less than 50%. The firm will experience
A. decreasing marginal rate of technical substitution.
B. economies of scale
C. diminishing marginal returns.
D. diseconomies of scale
Answer: B
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If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) equal to its revenues; small relative to its liabilities. B) high; large relative to its liabilities. C) high; small relative to its liabilities. D) low; large relative to its liabilities
According to international data,
a. U.S. per capita consumption of water is lower than in most other countries b. water prices are generally equivalent across nations c. European cities generally pay higher prices for water than cities in the United States d. water prices across nations tend to defy the Law of Demand
If the United States unilaterally removed all of its trade restrictions and moved toward a policy of free trade, international trade theory indicates that
a. U.S. residents would gain, but people in other countries would be worse off. b. people in other countries would gain, but U.S. residents would be worse off. c. both U.S. residents and people in other countries would be able to achieve higher income levels. d. the average income level would be lower in both the United States and other countries.
A negative demand shock could cause an increase in U.S. exports.
Answer the following statement true (T) or false (F)