When ________ scale of production leads to ________ average costs, an industry exhibits increasing returns to scale.
A. decreased; lower
B. decreased; unchanging
C. decreased; higher
D. increased; higher
Answer: C
You might also like to view...
The above figure shows a labor market with minimum wage equal to $16. In this figure, after taking account of search costs, what area equals the workers' surplus?
A) area A B) area B C) area C D) area D E) area E
The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is
A) 76,500. B) 70,000. C) 6,500. D) 126,500.
The Federal Reserve can tightly control
a. cash in the hands of the public b. cash in the hands of the public and demand deposits c. demand deposits d. funds in savings accounts and checking accounts e. borrowing by the government
Figure 7.3
The price of Video Game rentals is $2 For MUA/$ and $4 for MUB/$.The price of Energy Drinks is $2.Budget = $28.Refer to Figure 7.3. If the price of video game rentals drops from $4 to $2, the utility maximizing combination is ________ video game rentals and ________ energy drinks.
A. 1; 4 B. 2; 10 C. 10; 4 D. 11; 10