Which of the following refers to a short run phenomenon?
A. diminishing returns
B. constant returns to scale
C. economies of scale
D. diseconomies of scale
Answer: A
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Tax shifting
a. is the process by which buyers pass a tax onto sellers b. is the process that causes some of a tax collected by one side of a market to be paid by the other side c. is the process of avoiding taxes and lowering a tax burden d. is a way of avoiding payment of a tax e. is illegal in the United States
In the short run, when prices don't have enough time to change, the Federal Reserve:
A. can influence the level of interest rates in the economy. B. cannot influence the level of interest rates in the economy. C. can influence the level of interest rates in the economy but generally will not because it would be destabilizing. D. can only affect the amount of money in the economy.
Refer to the above figure. Suppose this industry was perfectly competitive and then merged into one monopolistic firm. The monopoly would
A. reduce output from Q3 to Q1. B. raise price from P1 to P4. C. raise price from P1 to P2. D. reduce output from Q2 to Q1 and raise price from P3 to P4.
If capital is fixed, but a firm varies labor
A) the firm stays on the same isoquant. B) the firm moves to a new isoquant. C) the firm might move to a new isoquant, depending on how much labor is added. D) the firm's output will be dependent on the marginal rate of technical substitution.