"If an industry's minimum efficient scale is between 2,000 and 4,000 units of output, then a firm producing 2,000 units of output in that industry has a cost-saving advantage over another firm producing 4,000 units of output in the same industry." Do you
agree or disagree? Explain.
What will be an ideal response?
Disagree. If the minimum efficient scale is between 2,000 and 4,000 units of output, then the average costs are the same for any firm producing within that output range. This means that the firm producing 2,000 units of output has no cost-saving advantage over the firm producing 4,000 units of output.
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A. Federal Open Market Committee B. Federal Advisory Council C. Office of Management and Budget D. Thrift Advisory Council
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A) create a shortage of labor. B) create a surplus of labor. C) have no effect because the equilibrium level of employment is not affected by a minimum wage above the equilibrium wage. D) create a lower wage rate for skilled workers than for unskilled workers.
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A) likely; increase B) not likely; change C) not likely; increase D) likely; decrease
Which of the following actions would increase the consumption spending component of the gross domestic product (GDP)?
a. Ann cooking dinner for Tim instead of going out b. Ann and Tim buying a used microwave oven c. Ann and Tim buying vegetables to prepare soup at home d. Tim buying Ann a dress e. Tim and Ann painting the garage themselves