Economies of scale imply that within some range one can increase the size of operation and:
a. total cost will decrease.
b. fixed cost will decrease.
c. average total cost will decrease.
d. average total cost will increase.
e. average variable cost will decrease.
c
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Decision trees are commonly used to illustrate how firms make business decisions that depend on the actions of rival firms. A decision tree has boxes that contain points that represent when firms must make the decisions contained in the boxes
What are these points called? A) decision options B) decision nodes C) option points D) either-or terminals
Economic regulation occurs when:
a. monopoly is the optimal market structure b. the industry is highly competitive c. the product is important to economic welfare d. the government owns the assets of the industry e. the product price, if left unregulated, would be too low
Micromania imports a good costing it $12,000 and exports a different good for a price of $9,000 . Ten years ago it paid $6,000 for the good and received $3,000 for the good it exported. How has the terms of trade index changed from then to now?
a. From 25 to 75 b. From 66 to 300 c. From 75 to 25 d. From 300 to 66 e. None of the above