The above figure represents the average total cost curves of a wheat farmer
a. Which average total cost curve has the lowest average total cost of producing 30,000 bushels of wheat?
b. Over what range of output is the farmer experiencing economies of scale?
c. Over what range of output is the farmer experiencing diseconomies of scale?
d. Which average total cost curve has the lowest possible average cost of production?
e. Which average total cost curve represents the largest plant?
a. ATC3 has the lowest average total cost to produce 30,000 bushels of wheat.
b. The farmer is experiencing economies of scale between 0 to 30,000 bushels of wheat.
c. The farmer is experiencing diseconomies of scale for more than 30,000 bushels of wheat.
d. ATC3 has the lowest possible average total cost, which occurs at 30,000 bushels of wheat.
e. ATC4 represents the largest plant.
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A. three or more years in poverty. B. at least two consecutive months within a year in poverty. C. two or more years in poverty. D. at least six consecutive months within a year in poverty.
The federal government is most likely to oppose
A. the purchase of a firm in danger of bankruptcy by a successful firm. B. a merger between two firms in a perfectly competitive industry. C. the purchase of one oligopolist by another in an industry with contestable markets. D. a merger between two firms in a three-firm industry.
The decision to form a currency union is similar to the decision to peg; however, the currency union requires:
A) a lower level of commitment and therefore requires a lower net benefit. B) a higher level of commitment and therefore requires a higher net benefit. C) more political integration and an agreement to limit trade. D) the loss of political autonomy and is therefore riskier.
Savers may prefer to use financial intermediaries rather than lending directly to borrowers because financial intermediaries:
A. increase the risk of lending. B. offer higher rates of return than available elsewhere. C. have a monopoly on lending. D. reduce the cost of gathering information about borrowers.