If the demand for flat screen television sets is rising while at the same time the price of a flat screen TV is falling, there is evidence of:
A. constant returns to scale.
B. diseconomies of scale.
C. economies of scale.
D. diminishing marginal product.
Answer: C
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It is possible that if a monopoly is broken up, the cost of production for that product could increase.
Answer the following statement true (T) or false (F)
Subtraction of ________ from Gross National Product yields Gross Domestic Product
A) net factor income B) depreciation C) factor income to the rest of the world D) net government income E) none of the above
The opportunity cost of any activity can be measured by the
a. value of the best alternative to that activity b. price (or monetary costs) of the activity c. level of technology d. time needed to select among various alternatives e. fringe benefits associated with the activity
Which of the following is a private owner prohibited from doing?
a. selling the property to another person b. erecting a fence designed to keep others from using the property c. painting the property a color that others do not like d. using the property in a manner that invades or infringes on the property of another