Refer to Figure 8.6, which shows just three of a firm's various possible short-run average cost curves. Which of the following statements is true?
A. The firm experiences increasing returns to scale at production levels above 130 units of output.
B. The firm experiences constant returns to scale.
C. The firm experiences increasing returns to scale up to a production level of 130 units of output.
D. The firm experiences decreasing returns to scale up to a production level of 130 units of output.
C. The firm experiences increasing returns to scale up to a production level of 130 units of output.
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A consumer has $100 to be spent on tables and chairs. If his income increases to $200, the prices of the goods remaining unchanged, his budget constraint:
A) pivots to the left along the vertical axis. B) pivots to the right along the horizontal axis. C) shifts to the left. D) shifts to the right.
Are there ever exceptions to the law of demand?
What will be an ideal response?
Slaver owners were optimistic about the economic future of slavery on the eve of the Civil War
Indicate whether the statement is true or false
Say the bus authority in your city increased the typical bus fare from $1.00 to $1.50 and that due to this increase total revenue increased by 20%. Based on this we know that the price elasticity of bus rides in your neighborhood is (assume demand curve is linear):
A. 0.4. B. 0.8. C. 1.5. D. 1.