Economies of scale suggests that as the level of production:
a. decreases, the average cost of producing each individual unit increases.
b. increases, the average cost of producing each individual unit increases.
c. decreases, the average cost of producing each individual unit declines.
d. increases, the average cost of producing each individual unit declines.
d. increases, the average cost of producing each individual unit declines.
Economies of scale suggests that as the level of production increases, the average cost of producing each individual unit declines.
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Which of the following curves is not U-shaped?
A) average variable cost curve B) average fixed cost curve C) average total cost curve D) marginal cost curve
According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply generates
A. an increase in aggregate supply since the supply of money is part of aggregate supply. B. increased spending on consumer goods and services directly, which causes an increase in aggregate demand. C. lower interest rates, which causes an increase in planned real investment spending and an increase in aggregate demand. D. an increase in nominal GDP and a change in the price level, but no change in real GDP.
If a person attends a public college and is not hired because the boss went to a private college, this might be an example of
A) statistical discrimination. B) racial discrimination. C) screening. D) moral hazard.
Owning a corporate bond entitles the bondholder to a portion of the firm's profits.
Answer the following statement true (T) or false (F)