Internal economies of scale will ________ average cost when output is ________ by ________

A) reduce; increased; a firm
B) increase; increased; a firm
C) reduce; increased; the industry
D) increase; increased; the industry
E) reduce; reduce; the industry


A

Economics

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When the economy suffers a temporary negative supply shock and the monetary policy makers try to stabilize economic activity in the short run, then

A) aggregate demand curve shifts rightward. B) output will be at its potential. C) inflation rate will be higher. D) all of the above. E) both A and B.

Economics

Cartels are unstable and will tend to fall apart due to cheating on the agreement.

Answer the following statement true (T) or false (F)

Economics

Expenditure switching policies are best used on their own

Indicate whether the statement is true or false

Economics

Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except:

A. People regard health care as an entitlement or a right B. Imperfect information among consumers of health care C. Third-party insurance payments shield consumers from the true cost of health care D. High income-elasticity of the demand for health-care services

Economics