Refer to Figure 13-13. Economies of scale are exhausted at which output level?
A) Q1 units B) Q2 units
C) Q3 units D) more than Q1 units
C
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The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. If, other things equal, Creamy Crisp's revenue fell to $286,000: A. its implicit costs, including a normal profit, would exceed its explicit costs. B. it would earn a normal profit but not an economic profit. C. it would suffer an economic loss. D. its accounting profit would fall to zero.
Jimbo has a comparative advantage over Ned in producing a good if
A. Jimbo can produce more of the good than Ned can in a given time period. B. Jimbo has a lower opportunity cost of producing the good than does Ned. C. Jimbo has to trade off more than Ned does to produce the good. D. Jimbo has a higher opportunity cost of producing the good than does Ned.
How does a government budget deficit occur?
A. If a nation carries a public debt, it must be running a deficit every year. B. A government's tax revenues exceed its spending. C. A nation earns more on exports than it spends on imports. D. A government's spending exceeds its tax revenues.
Price ceilings were established for most goods during World War II because of
a. chronic excess demand b. chronic excess supply c. pressure from Senators in predominantly agricultural states d. concern over rapidly rising prices as military production increased e. food shortages