A firm is most likely to experience economies of scale if its start-up costs are high and its marginal cost is ________.
A. low
B. decreasing
C. increasing
D. high
Answer: A
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A slope is measured as the
A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. E) value of the variable measured on the x-axis minus the value of the variable measured on the y-axis.
Comment on the following statement: "The shape of the long-run average cost curve is determined by diminishing returns."
What will be an ideal response?
Table 9-1 Output Consumption Investment Net Exports 1,000 800 500 100 1,500 1,200 500 100 2,000 1,600 500 100 2,500 2,000 500 100 3,000 2,400 500 100 3,500 2,800 500 100 4,000 3,200 500 100 ? In Table 9-1, inventories will be increasing as long as output is above
A. 1,000 B. 1,500 C. 2,000 D. 3,000
Markets exist:
A. so people can buy and sell things. B. because people are self-sufficient. C. because each person specializes in the production of many products. D. as an arrangement where buyers do not interact with sellers.