Refer to the diagram. Economies of scale:
A. are evident over the entire range of output.
B. develop over the 0Q 1 range of output.
C. begin at output Q 3 .
D. occur only over the Q 1 Q 3 range of output.
B. develop over the 0Q 1 range of output.
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Stellar Electronics sells all of the 20,000 GPS devices it produced for a price of $50 each. Every consumer who wants a GPS device from Stellar is able to buy one. This example shows ______.
a. market surplus b. individual equilibrium c. market equilibrium d. individual surplus
Comparisons of per capita GDP across international boundaries provide information on the distribution of GDP within each country.
Answer the following statement true (T) or false (F)
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
If demand for a good is perfectly inelastic, then
A) a price increase would cause a fall in quantity demanded. B) a price increase would cause no change in quantity demanded. C) a price increase would cause an increase in quantity demanded. D) a price increase would cause a fall in total revenue.