Answer the following questions true (T) or false (F)
1. If a firm is experiencing diseconomies of scale, its long-run average cost curve is increasing.
2. A U-shaped long-run average cost curve implies that a firm experiences economies of scale at low levels of production and diseconomies of scale at high levels of production.
1. TRUE
2. TRUE
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Refer to Figure 4.1. The game described in the payoff matrix has the characteristics of a(n) ________ game
A) prisoner's dilemma B) pure coordination C) battle of the sexes D) assurance
Which of the following equations accurately shows a total revenue decrease when demand is price elastic?
a.
b.
c.
d.
Which of the following is included in determining Gross Domestic Product?
A. a housewife preparing dinner B. a gardener canning vegetables for consumption during the winter C. the purchase of a newly built house D. the purchase of a used car
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true? The United States has an absolute advantage:
A. and a comparative advantage in the production of shoes. B. in the production of both goods and a comparative advantage in the production of neither good. C. in the production of both goods and a comparative advantage in the production of both goods. D. and a comparative advantage in the production of apples.