Returns to scale describes the long-run relationship between:
A. the quantity of input and the average variable cost.
B. the quantity of output and the average variable cost.
C. the quantity of input and the average total cost.
D. the quantity of output and average total cost.
D. the quantity of output and average total cost.
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The use of data in economic models is important because
A) the model's predictive value rests on supportive evidence from real-world data. B) the models are always complex in nature. C) models must analyze every possible angle of the problem. D) social problems analyzed by economists require long streams of data.
In the figure below, $40,000 for certain is as desirable as $47,000 with risk.
A. True
B. False
C. Uncertain
Taxation can promote good social policy while minimizing economic inefficiency
a. True b. False Indicate whether the statement is true or false
One of the reasons why economies of scale exist is that the opportunity for labor specialization tends to increase as the size of the firm grows.
Indicate whether the statement is true or false.