The diagram shows the short-run average total cost curves for five different plant sizes of a firm. The shape of each individual curve reflects:
A. increasing returns, followed by diminishing returns.
B. economies of scale, followed by diseconomies of scale.
C. constant costs.
D. increasing costs, followed by decreasing costs.
A. increasing returns, followed by diminishing returns.
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If a city decides to lift restrictions of how many taxi cabs can operate, social welfare will increase
What will be an ideal response?
Many experts believe that the major determinant of exchange rates in the short run is relative
a. price levels. b. income levels. c. money supplies. d. interest rates.
Which of the following is NOT an example of the hurdle method of price discrimination?
A. An early-bird discount for people who order dinner before 5pm. B. A mail-in rebate on a printer. C. A lower price on strawberries when they are in season. D. A coupon for $10 off any purchase of $50 or higher.
Robert must always have cream in his coffee. For Robert, the cross price elasticity of demand for coffee and cream is
A) equal to 0. B) negative. C) positive. D) impossible to determine without more information.