Suppose that in 2012 MBI Corp. produced 100 million units of a good at an average cost of $6, and in 2013 MBI Corp. expanded its plant capacity and produced 200 million units at an average cost of $6.20. In this range, one can conclude that MBI Corp. is experiencing:
A. economies of scale.
B. diseconomies of scale.
C. neither economies of scale or diseconomies of scale.
D. increasing marginal product.
Answer: B
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A) price floor; $12 per hour B) price floor; $8 per hour C) price ceiling; $10 per hour D) price ceiling; $12 per hour
According to the book, the most likely time for women's friendships to fall off is between the ages of:
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National debt is likely to fall when
A. there is a succession of budget deficits. B. government’s expenditure falls short of its receipts. C. government’s expenditures exceed its receipts. D. government expenditure equals revenue.