Which of the following refers to a short run phenomenon?
A. diminishing returns
B. economies of scale
C. constant returns to scale
D. diseconomies of scale
Answer: A
You might also like to view...
Computations of the price elasticity focus on the calculated magnitude due to of the law of demand.
Answer the following statement true (T) or false (F)
Which of the following is not a subcategory of consumption spending?
a. consumer services b. consumer investment c. consumer durable goods d. consumer nondurable goods
Which of the following most completely describes the concept of price elasticity of demand?
a. A measure of the responsiveness of quantity demanded to a change in consumer income b. A measure of the responsiveness of quantity demanded to a change in the price of a substitute c. The percentage change in quantity demanded divided by the percentage change in price d. The percentage change in quantity demanded divided by the percentage change in the price of a substitute
The estimated demand for a good is
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If the price of the good falls by $4, the quantity demanded will ________ by ________ units.
A. increase; 50 units B. decrease; 12 units C. increase; 20 units D. increase; 48 units E. increase; 5 units