An improvement in technology will cause the
A. economy to move down the production possibility frontier.
B. production possibility frontier to shift inward.
C. production possibility frontier to shift outward.
D. economy to move closer to its production possibility frontier.
C. production possibility frontier to shift outward.
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Refer to Figure 11-11. In the short run, if the firm sells fewer than 5,000 picture frames per month
A) it should produce with the scale of operation associated with ATCc. B) it should produce with the scale of operation associated with ATCa. C) it should produce with the scale of operation associated with ATCb. D) it will experience constant returns to scale.
What is the benefit of using market-based policies over command-and-control regulations?
a. Market based policies can achieve the same result at lower costs. b. Market based policies can achieve the same result at higher costs c. Market based policies are easier to enforce than command-and-control policies. d. Market based policies eliminate more pollution than command-and-control policies.
An agreement in which the incentives of both parties match their goals as closely as possible is:
A. a corporate takeover contract. B. an incentive-compatible contract. C. an X-inefficiency contract. D. a public good.
Diminishing marginal returns occur in the short run.
Answer the following statement true (T) or false (F)