Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. If Rogue's average total cost decreases as the business increases plant size, then Rogue experiences
A) economies of scale.
B) diseconomies of scale.
C) diminishing marginal returns.
D) constant returns to scale.
A
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If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $5 and its long-run average cost is $4, which of the following statements is true?
A) The firm should expect the market price of its product to increase. B) The firm should expect the market price of its product to fall. C) The firm should expect to earn positive economic profit indefinitely. D) The firm should expect the market supply curve to decrease.
The equilibrium level of GDP is always accompanied by full employment and stable prices.
Answer the following statement true (T) or false (F)
Aggregate supply shocks are:
A. the result of structural policy actions. B. the result of monetary policy actions. C. inflation shocks or shocks to potential output. D. the result of fiscal policy actions.
The purchasing power of money
A. varies inversely with the interest rate. B. is determined by law. C. varies inversely with the price level. D. depends on the value of gold.