_____________ - a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines.
A. Skill
B. Specialization
C. Economies of scale
D. Division of labor
C. Economies of scale
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The general rule for benefit maximization suggests that in personal equilibrium:
A) the ratio of total benefits to price should be identical across all goods. B) the ratio of total benefits to income should be identical across all goods. C) the ratio of marginal benefits to price should be identical across all goods. D) the ratio of marginal benefits to income should be identical across all goods.
Direct controls imposing identical emission limits on all polluters are
A) efficient if emissions can be accurately monitored, which is seldom possible. B) equitable because all polluters bear equal costs. C) likely to require a great deal of high-cost pollution reduction. D) more efficient and equitable than a system of fines because fines matter less to large than to small polluters.
The use of bar codes, computerized price lists, and scanners in supermarkets is an example of
A) menu costs. B) implicit contracts. C) efficiency pricing. D) All of the above.
How much do outputs increase when labor and capital increase from 1 to 2 units for the following production function , q = 10L0.5K0.3?
A) 7.4 units. B) 7 units. C) 8 units. D) None of the above.