The In The News article "Tesla Banks on Gigafactory" says that
A. The new plant will likely result in diseconomies of scale.
B. The plan to build a gigafactory is a short-run production decision.
C. The investment will be a variable expense.
D. Teslas plan is a long-run production decision, and the company plans to enjoy economies of scale.
Answer: D
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Recall the Application. If it is not known whether the decrease in price of illegal drugs is primarily due to a change in supply, a change in demand, or equal changes in both, the equilibrium quantity of drugs
A) will increase. B) will decrease. C) will not change. D) may or may not change.
China's exchange rate system from 1994 through 2005 is an example of
A) a flexible exchange rate system. B) a fixed exchange rate system. C) a managed float exchange rate system. D) the Bretton Woods System. E) a floating exchange rate system.
________ is a company that obtains funds primarily from wealthy investors and uses the funds to make complicated, often risky investments
A) A mutual fund B) A pension fund C) A hedge fund D) An investment bank
A firm's long-run position under perfect competition is often said to be efficient because
A) P = AR > MC = AVC. B) P = AR > MR = MC. C) P = MR = AVC = AFC. D) P = MR = MC = ATC.