Which of the following is an example of economies of scale?
A. To attract firms to locate in its state, the state government reduced the tax rate that businesses must pay on its profits, thus lowering the costs to firms who locate in the state.
B. As the computer industry has expanded, the number of professionally trained computer programmers has also increased, which has caused the salaries of computer programmers to increase.
C. A firm increases in size and is therefore able to lower its health insurance costs because as the size of the group insured increases, the premium per person decreases substantially.
D. As the demand for calculators increased, the price of calculators actually fell.
Answer: C
You might also like to view...
Point F
A. is where the United States' economy operates most of the time.
B. is unattainable.
C. represents a severe recession.
D. can be temporarily attained under unusual circumstances.
Which of the following describe how China’s Southern School of painting differed from the Northern School?
A. abstraction and inventive themes B. ink painting and conservative themes C. linear representations and orthodox themes D. rich color and traditional themes
A firm doubled all its inputs and experienced a 50% increase in output. If all input prices remain unchanged, the firm's long-run average cost exhibits:
A. economies of scale at the current output level. B. diseconomies of scale at the current output level. C. a constant long-run average cost at the current output level. D. diminishing marginal returns at the current output level.
If everyone earned the same income, the Lorenz curve would be
A. the horizontal axis. B. a straight line from the origin at a 45-degree angle. C. very bowed from the diagonal. D. a rectangular hyperbola.