When the number of mega-producers of hobs that operated at a lower average cost than smaller producers rose, the number of hogs slaughtered rose to record levels. What economic concept does this describe?
A. Indivisible setup costs
B. Economies of scope
C. Minimum efficient production
D. Economies of scale
Answer: D
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Employing Figure 4-2 above, the money market is initially in equilibrium at point G and after the economy moves to equilibrium, the Federal Reserve increases the money supply by 500. We would observe
A) the interest rate first rises to 7.5% and Y to 3500. B) the interest rate first rises to 7.5% then falls to 5%. C) Y rises to 4000 as interest rates remain stable. D) the economy moves from point G to C, to F then D.
If one country can produce a good with fewer resources than another country, this is called:
a. specialization. b. geographic advantage. c. comparative advantage. d. absolute advantage. e. free trade.
When business is profitable, corporate managers will prefer plowback to other sources of funding
a. True b. False Indicate whether the statement is true or false
Which of the following are illegal under the antitrust laws of the United States?
a. charging prices that exceed average total costs b. charging some consumers different prices than others c. mergers that unnecessarily create excessively large firms d. collusive behavior or other actions designed to create a monopoly or cartel