In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences
A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) negative returns to scale.
A
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When the supply of a good decreases, there will be a(n):
A. increase in the quantity demanded. B. decrease in buyers' reservation prices for the good. C. decrease in the quantity demanded. D. decrease in demand.
Approximately ________ people live in the United States and ________ people live in the world
A) 210 million; 5 billion B) 310 million; 7 billion C) 210 million; 6 billion D) 410 million; 8 billion E) 310 million; 3 billion
How do you explain why income inequality in the United States has been increasing? a. New technologies raise the MRP of educated workers, while having no (or a much smaller effect) on the MRP of uneducated workers
b. The MRP of rich workers increases more slowly than the MRP of poor workers. c. The labor supply of poor workers shifts to the left, while the labor supply of rich workers shifts to the right. d. Many talented U.S. workers, earning high incomes, are lured away by firms located in other countries that are paying considerably higher wage rates. e. Minimum wage laws have raised the minimum wage rates.
A competitive market may misallocate resources over time because
A. current profits are worth more than future profits because of the time value of money. B. current profits are worth less than future profits because of the time value of money. C. the Federal Reserve sets interest rates different than the opportunity cost of consuming now versus later. D. the Federal Reserve always prefers capital investment over personal consumption.