The minimum efficient scale is:
A. the quantity after which it makes no sense for a firm to produce.
B. the minimum quantity where a firm would be able to produce profitably.
C. the output level beyond which the firm will not experience scale economies.
D. the output level beyond which the firm will experience scale economies.
Answer: C
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Increased specialization in the computer industry is evidenced by
(a) the types of government policies implemented to aid the computer industry. (b) the growth of the software industry. (c) the growth of the manufacturing industry. (d) the growth of agriculture.
Ten individuals have $100 and identical preferences for picnics, p, and kayak trips, k, where U(p, k) = k0.5p0.5. The price of picnics is $5 and the price per kayak trip is $ 10
What is the shortage/surplus in the market when the supply of picnics totals 120? A) There is a surplus of 20. B) There is a shortage of 20. C) The market is in equilibrium. Therefore, there is no surplus/shortage. D) There is not enough information to answer this question.
Why is a point below the production possibilities curve less efficient than a point on that curve?
What will be an ideal response?
If price is above the equilibrium, then quantity supplied will be greater than quantity demanded, putting downward pressure on price.
Answer the following statement true (T) or false (F)