Increasing returns to scale in production means
A) more than 10% as much of all inputs are required to increase output 10%.
B) less than twice as much of all inputs are required to double output.
C) more than twice as much of only one input is required to double output.
D) isoquants must be linear.
B
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In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. In the current market for peanut butter, the price rises and the quantity increases
This set of results means that A) demand increased by more than supply decreased. B) supply decreased by more than demand increased. C) demand increased by more than supply increased. D) supply decreased by more than demand decreased.
In terms of location decisions, firms evaluate the infrastructure of the area in terms of access to transportation as well as the quality of life
Indicate whether the statement is true or false
Profits can be maximized by equating MR = MC = Price
A) only in perfectly competitive markets. B) only in monopoly markets. C) only in discriminating monopoly markets. D) only with government price controls.
Susie doesn't buy ice cream this week at the grocery store because she intends to start a diet in a few days. Her behavior is an example of:
A. a commitment device. B. status quo bias. C. the endowment effect. D. positive framing.