The short-run average variable cost curve eventually begins to increase at an increasing rate because of
A. diminishing returns phenomena.
B. a constraint that does not allow the firm to change its production technology.
C. increasing returns to scale to capital.
D. diseconomies of scale.
Answer: A
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In 2002, President Bush imposed a tariff on imported steel. He did so in response to rent seeking by
A) domestic steel consumers. B) domestic steel producers. C) foreign steel consumers. D) foreign steel producers. E) foreign politicians.
When two goods are perfect substitutes, the
a. indifference curve is a horizontal straight line. b. marginal rate of substitution is constant. c. indifference curve is a vertical straight line. d. Both a and b are correct.
Which of the following will not change the demand for oranges?
What will be an ideal response?
When private costs equal social costs, it means that:
A. the external cost must be small relative to the private cost in the market. B. no externality of any kind is present in the market. C. positive externalities are present in the market. D. negative externalities are not present in the market.