In the short run, if a firm operates, it earns a profit of $500. The fixed costs of the firm are $100. This firm has a producer surplus of
A) $500.
B) $100.
C) $400.
D) $600.
D
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Saving
A) slows growth because it decreases consumption. B) finances investment which brings capital accumulation. C) has no impact on economic growth. D) is very low in most East Asian nations. E) is important for a country to gain the benefits of international trade.
Refer to Figure 21.5. Economies of scale occur in the following range of factory sizes
A. #3 only. B. #1 through #3. C. #1 through #5. D. #1 to #2.
Are increasing cost industries a result of the law of diminishing marginal returns?
What will be an ideal response?
Suppose the market for autoworkers is initially in equilibrium, but then the demand for automobiles increases and simultaneously the automakers allow autoworkers less flexibility working at the plants. What happens in the market for autoworkers?
A. The equilibrium wage rate and the equilibrium quantity of labor will both decrease. B. The equilibrium wage rate will increase and the equilibrium quantity of labor will increase, decrease or stay the same. C. The equilibrium wage rate will increase, decrease or stay the same and the equilibrium quantity of labor will increase. D. The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.