When firms become so large that they have to add additional layers of management and decision making becomes more cumbersome,
a. economies of scale are said to occur
b. marginal cost begins to fall in the short run
c. marginal cost begins to rise in the short run
d. the long-run average total cost curve is flat
e. the long-run average total cost curve slopes upward
E
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Given the production function Y = A , if the rental price of capital is 0.133, Y = 690, and K = 1,728, what is the value of the exponent ?? If A = 1, and the real wage is 1.15, is this economy in a long-run equilibrium?
What will be an ideal response?
According to Rosenberg (2004), the U.S. economy between the Civil War and World War II was relatively poor in which of its productive resources?
(a) Land (b) Labor (c) Capital (d) Entrepreneurial talent
Exhibit 4-8 Demand and supply curves
In Exhibit 4-8, a movement from A to C is best described as a(n):
A. increase in the quantity supplied and a decrease in the demand. B. decrease in the quantity supplied and a decrease in demand. C. decrease in the quantity supplied and an increase in demand. D. decrease in the quantity demanded and a decrease in supply.
Assuming a long-run aggregate supply curve, an increase in the money supply results in ________ in output and ________ in price level.
A. a decrease; a decrease B. an increase; no change C. a decrease; no change D. no change; an increase