When economies of scale are present,
A. costs per unit decline as output expands.
B. the government feels responsible for breaking up the firm.
C. firms always make handsome profits.
D. costs fall as the size of the product is increased.
Answer: A
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Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) Unemployment will decline. B) The aggregate demand curve will shift to the left. C) Output will decline. D) Prices will decline.
A game is:
A. a situation in which each member of a group makes at least one decision and cares both about his own choice and about others' choices. B. describes a situation in which strategy plays a role. C. provides the foundation for understanding competition in industries with only a few producers. D. All of these are correct.
Specialization: a. is a way for individuals to make the best use of resources by devoting themselves to one primary productive activity. b. is a way for society to become wealthier while not using their resources
c. is a way for people to avoid having to trade. d. increases one's opportunity cost of the activity they choose to specialize in.
If watermelons are normal goods, the demand for them will rise as the income of consumers rises
a. True b. False Indicate whether the statement is true or false