As a firm expands into overseas markets, information problems and the complexity of operating within many varied cultures and economies may result in
a. constant returns to scale
b. diminishing marginal returns
c. declining long-run marginal cost
d. diseconomies of scale
e. economies of scale
D
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Refer to Figure 21-6. The loanable funds market is in equilibrium, as shown in the figure above
An increase in the supply of loanable funds could result in which of the following combinations of the real interest rate and quantity of loanable funds at a new equilibrium? A) The real interest rate is 3 percent, and the quantity of loanable funds is $90 million. B) The real interest rate is 3 percent, and the quantity of loanable funds is $150 million. C) The real interest rate is 5 percent, and the quantity of loanable funds is $90 million. D) The real interest rate is 5 percent, and the quantity of loanable funds is $150 million.
To complete the theory of exchange rates, a model should be created that:
a. accommodates short-run changes in variables. b. accommodates long-run changes in variables. c. accommodates changes in expectations. d. accommodates short-run and long-run changes in variables and changes in expectations
If a firm in a perfectly competitive market faces the cost curves in the graph shown and observes a market price of $10, the firm:
A. can make positive profits by producing where MC = MR. B. cannot make positive profits and should shut down in the short run. C. can make positive profits by producing more than 43 units. D. should continue to operate in the short run, but plan to exit in the long run.
On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
A. 1.4 B: 1.5 C: 1.6 D: 1.7