Given that there are significant economies of scale involved in making flat screen television sets, the cost of manufacturing a flat screen television set most likely will:
A. rise as the industry matures.
B. fall as the industry matures.
C. rise whether the industry matures or not.
D. remain the same as the industry matures.
Answer: B
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As real disposable income increases, consumption expenditures
A) increase by the same amount. B) increase by a smaller amount. C) increase by a larger amount. D) remain constant.
When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:
A. has an absolute advantage at producing that good. B. has a comparative advantage at producing that good. C. has no reason to trade with others. D. is efficient in production.
The U.S. had the largest trade deficit in 2009 with which of the following countries?
a. Canada b. Japan c. Mexico d. China
Which of the following rises when the U.S. price level falls?
a. interest rates b. the value of the dollar in the market for foreign-currency exchange c. real wealth d. All of the above are correct.