An increase in long-run average costs resulting from increases in output is
A) attributed to economies of scale.
B) attributed to diseconomies to scale.
C) attributed to constant returns to scale.
D) attributed to the law of diminishing marginal product.
Answer: B
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Empirical evidence seems to suggest that in industrialized economies, government ownership has:
a. grown more rapidly than the economy has risen over time. b. has disappeared in favor of state capitalism c. has either stayed the same or fallen. d. we cannot answer because we cannot measure it e. all of the above
Which of the following events would produce an upward shift in the consumption function, other things being equal?
A. an increase in consumer wealth B. a decrease in consumer wealth C. a decrease in autonomous consumption D. an increase in the price level
consumer spending not dependent on current income
What will be an ideal response?
Stefano has just completed an original oil painting. After considering the costs for brushes, paint, canvas, and the value of Stefano's labor time, the marginal cost of the painting is $1,000. Lucky Stefano. One art lover paid him $1,500
How much producer surplus did Stefano obtain? A) The amount of producer surplus cannot be determined from the information given. B) $1,500 C) $1,000 D) $500