Which of these is an example of economies of scale?
(A) A restaurant charges customers $1 a glass for water that was once provided for free.
(B) A ranch increases its profits by expanding from 400 to 800 cattle without buying or renting additional land.
(C) An Internet access company charges customers different rates for using the Internet at different times of day.
(D) A shoe store finds it can increase profits by hiring high school students who are willing to work for minimum wage.
Ans: (B) A ranch increases its profits by expanding from 400 to 800 cattle without buying or renting additional land.
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The new $20 bills are being introduced by the U.S. Treasury primarily to diminish
A. inflation. B. poverty. C. counterfeiting. D. bank failures.
A relative price shift occurs when
A. the inflation rate of a good or service is significantly higher or lower than the overall inflation rate. B. the inflation rate of a good or service matches the overall inflation rate. C. the inflation rate of a good or service remains unchanged. D. inflation exceeds the average revenue per capita.
Assume that a Tesla Model 3 sells for $30,000 in the United States and that the exchange rate is $1 = 0.8 euro. For purchasing power parity to hold, the same car in Europe should sell for
A. 36,250 euros. B. 37,500 euros. C. 24,000 euros. D. 30,000 euros.
As your marginal utility declines, your _____ utility rises.
Fill in the blank(s) with the appropriate word(s).