If the total cost of producing 10 jets is $28 million and the total cost of producing 11 jets is $30 million, this firm is experiencing
A. economies of scale in the range of 10 to 11 jets.
B. constant returns to scale in the range of 10 to 11 jets.
C. diseconomies of scale in the range of 10 to 11 jets.
D. increasing average variable costs in the range of 10 to 11 jets.
Answer: A
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After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the
A) "law of supply" does not apply to companies in the "high-tech" sector of the economy. B) "law of demand" does not apply to customers in the "high-tech" sector of the economy. C) supply curve of tablets shifted rightward. D) demand curve for tablets shifted leftward.
What are the problems that arise when a commodity is used as money?
What will be an ideal response?
In a competitive industry
a. firms have no cost advantages b. some firms have cost advantages, while others do not c. all the firms have highly differentiated products d. Consumers have strong preferences across brands
Perfect price discrimination:
A. eliminates all consumer surplus. B. maximizes producer surplus. C. creates no deadweight loss. D. All of these statements are true.