Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, they are able to buy inputs in bulk, resulting in lower input prices. It is likely that continued growth will result in:
A. economies of scale.
B. Gigantic Company achieving the minimum efficient scale of production.
C. diseconomies of scale.
D. increasing marginal returns.
Answer: A
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The tax on gasoline in England is close to $3.20 per gallon, whereas the federal excise tax on gasoline in the United States is 18.4 cents per gallon. Suppose the U. S. government raised the federal excise tax to the English gas tax rate of $3.20
Explain the likely impact of that higher tax rate on conservation, oil exploration, and the development of substitutes for gasoline.
A prominent postwar pattern of U.S. government budget deficits was broken in 1983-1990 as
A) recession was accompanied by a shrinking deficit. B) recession was accompanied by a growing deficit. C) recovery from recession was accompanied by a shrinking deficit. D) recovery from recession was accompanied by a growing deficit.
Barriers to entry do not occur when:
a. economies of scale in production exist in an industry. b. firms requires a professional license or franchise agreement. c. the firm that introduces a product is granted a patent. d. a firm controls a scarce resource. e. diseconomies of scale in production exist in an industry.
Veronica deposited $1,000 into an account two years ago. The first year she earned 7 percent interest; the second year she earned 5 percent. How much money does Veronica have in her account today?
a. $1,133.31 b. $1,120.00 c. $1,123.50 d. None of the above are correct to the nearest cent.