In the long run, a firm might experience rising per-unit cost due to:

a. economies of scale.
b. diseconomies of scale.
c. the law of supply.
d. the law of diminishing marginal returns.


b

Economics

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If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$75 / (1 + .04)6] + [$2,500 / (1 + .04)6]", which of the following is correct?

A) The face value is $75, the interest rate you need is 1.04 percent, and the coupon will mature in 6 years. B) The face value is $2,500, the coupon is $75, and the coupon will mature in 4 years. C) The face value is $2,500, the interest rate you need is 6 percent, and the coupon will mature in 4 years. D) The coupon is $75, the interest rate you need is 4 percent, and the coupon will mature in 6 years.

Economics

Extremely large budget deficits may lead to

a. low inflation. b. low employment. c. high unemployment. d. high inflation.

Economics

A budget deficit is incurred whenever:

A. Tax revenues fall short of expenditures over the fiscal year. B. Discretionary fiscal spending is used to achieve macro equilibrium. C. The U.S. Treasury engages in refinancing activities. D. The government uses fiscal policy.

Economics

Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes are lemons (low quality), how many lemons (low quality) will be supplied by sellers?

A. 8 B. 12 C. 16 D. 22

Economics