As the accounting industry expands, the demand for certified public accountants (CPAs) also increases, which causes the salaries of CPAs to increase. This is an example of
A. diseconomies of scale.
B. increasing marginal returns.
C. economies of scale.
D. constant returns to scale.
Answer: A
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In the above figure, the price elasticity of supply at any given quantity is
A) highest along S1, next highest along S2, and lowest along S3. B) highest along S3, next highest along S2, and lowest along S1. C) equal to zero on each of the three supply curves. D) equal to one on each of the three supply curves.
Explain why a single labor supply curve can have both a positive and negative elasticity
What will be an ideal response?
The most heavily traded category of goods in the world is:
a. office and telecom equipment. b. chemicals. c. iron and steel. d. textiles. e. crude petroleum.
Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3 . They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is
a. $1. b. $2. c. $2.50. d. $3.