X-inefficiency refers to a situation in which a firm:
A. is not as technologically progressive as it might be.
B. encounters diseconomies of scale.
C. fails to realize all existing economies of scale.
D. fails to achieve the minimum average total costs attainable at each level of output.
Answer: D
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The new Keynesians emphasize the importance of
A) rational expectations. B) sticky wages and prices. C) real causes of the business cycle. D) the monetary growth rule.
At the equilibrium price, the quantity that buyers want to buy exactly equals the quantity that sellers want to sell
a. True b. False Indicate whether the statement is true or false
Which of the following would be considered an ongoing expense?
A. Raw materials B. Advertising C. Employee salaries D. All of these could be considered ongoing expenses.
All else equal, compared to small-budget items such as paper towels, the price elasticity of demand for big-ticket items such as refrigerators is:
A. equal. B. lower. C. higher. D. very low.