When the firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is ________ and the firm is experiencing ________.
A. horizontal; constant returns to scale
B. downward sloping; constant returns to scale
C. upward sloping; diseconomies of scale
D. downward sloping; economies of scale
Answer: D
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If the payment stream of a bond remains the same and the price of the bond goes down, the
A) effective yield is unchanged. B) effective yield rises. C) effective yield decreases. D) bond is reissued to reflect the higher interest rate. E) bond is reissued to reflect the lower interest rate.
For each of the following pairs of products, state which are complements, which are substitutes, and which are unrelated
a. Blu-ray discs and video-on-demand b. Fiat 500 and Mini Cooper S c. Toothpaste and toothbrush d. Popcorn and snowboards e. Razors and razor blades
During a(n) ________ many firms experience reduced profits, which reduces ________ and investment spending
A) recession; government spending B) recession; cash flow C) expansion; cash flow D) expansion; business confidence
The total U.S. labor force excludes those
a. under age 20. b. under age 18. c. under age 16. d. over age 70.