In the above figure, the long-run cost curve between points E and F illustrates
A. diseconomies of scale.
B. diminishing marginal product.
C. constant returns to scale.
D. economies of scale.
Answer: A
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Sammy's Inc competes with a few other firms because there are natural barriers to entry. Sammy's operates in
A) a perfectly competitive market. B) an oligopoly. C) a monopolistically competitive market. D) a monopoly. E) a natural monopolistically competitive market.
Because of the ________ of vaccinations, economic efficiency would be improved if more people were vaccinated
A) positive externality B) moral hazard C) adverse selection D) negative externality
If Big Pools charges an annual membership fee of $500 per person for the use of their pool and charges a $4 fee each time a member uses the pool, this is an example of ________.
A) an all-or-nothing offer B) commodity bundling C) a single pricing scheme D) two-part pricing
Fiscal policy is likely to fail to correct stagflation in an economy because: a. it affects both aggregate demand and supply, although only aggregate supply needs to be changed
b. it affects both the aggregate demand and supply, although only aggregate demand needs to be changed. c. it affects aggregate demand only, although aggregate supply needs to changed. d. it affects aggregate supply only, although only aggregate demand needs to be changed. e. it affects either aggregate demand or aggregate supply, although both need to be changed simultaneously.