If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be
a. a decreasing cost industry.
b. an increasing cost industry.
c. a constant cost industry.
d. an industry characterized by economies of scale.
C
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If the marginal benefit of getting a college degree rises, rational people will
A) drop out of college. B) not change their behavior. C) attend college in greater numbers. D) require that college get easier. E) raise the marginal cost of attending college.
At prices above a consumer’s reservation price:
A. the opportunity cost is less than the benefit from having the good. B. the opportunity cost is greater than the benefit from having the good. C. the buyer will purchase the good. D. the willingness to pay is greater than the price.
If the substitution effect dominates the income effect, then an increase in the wage rate will increase the quantity of labor supplied by an individual
a. True b. False
Wealth is measured as
A) only tangible objects. B) only buildings, machinery, land, cars, stocks and bonds. C) only nonhuman wealth. D) nonhuman and human wealth.