If all resources used in the production of a product are increased by 10 percent and output increases by less than 5 percent, then the firm is experiencing:
A. Economies of scale
B. Diseconomies of scale
C. Constant returns to scale
D. Decreasing average total costs
B. Diseconomies of scale
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In a short-run macroeconomic equilibrium, real GDP exceeds potential GDP. If aggregate demand does not change, then the
A) short-run aggregate supply curve will shift rightward as the money wage rate falls. B) short-run aggregate supply curve will shift leftward as the money wage rate rises. C) long-run aggregate supply curve will shift leftward as the money wage rate rises. D) long-run aggregate supply curve will shift leftward as the money wage rate falls.
Make the argument that sales taxes could be considered as a regressive tax
What will be an ideal response?
If wages and prices adjust rapidly, we would expect expansionary monetary policy to be
A) more likely to affect the unemployment rate. B) more likely to reduce the natural rate of unemployment. C) less likely to affect the unemployment rate. D) less likely to result in a vertical short-run Phillips curve.
The present value of receiving M dollars in year t when the prevailing interest rate is i is equal to
a. M - it b. M ? (1 - i)t c. M/(1 + i)t d. M ? it e. M/it