Assume a new technology further reduces the cost of producing calculators. Also assume that consumers have cut back on their scheduled purchases in anticipation of even more cost-saving developments. As a result, we can expect
a. a decrease in price but no predictable change in output.
b. a decrease in output but no predictable change in price.
c. an increase in output but no predictable change in price.
d. a predictable decrease in both output and price.
a
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Diseconomies of scale are illustrated graphically by an upward shift of the firm's long-run average cost curve
Indicate whether the statement is true or false
Expressing the U.S. federal budget deficit as a percentage of Gross Domestic Product (GDP)
A) results in inflation-adjusted revenue and expenditure numbers. B) helps us understand the size of the deficit relative to the size of the economy. C) was useful through the 1980s, but is no longer helpful because both the deficit and real Gross Domestic Product (GDP) have grown so large. D) is only useful if the budget deficit is rising at an annual rate of more than 4 percent.
In a market economy, which of the following will most likely cause a prolonged milk shortage?
a. an increase in the demand for milk b. an increase in the supply of milk c. imposition of a price floor above the equilibrium price of milk d. imposition of a price ceiling below the equilibrium price of milk
Refer to the information provided in Figure 8.3 below to answer the question(s) that follow. 
Figure 8.3
Refer to Figure 8.3. The marginal cost of the ninth basketball is
A. less than $2. B. $2. C. $3. D. greater than $3.