The law of increasing costs is based on each of the following, except
A. the law of scarcity.
B. the law of diminishing returns.
C. diseconomies of scale.
D. factor suitability.
A. the law of scarcity.
You might also like to view...
When fiscal policy is used, time lags are variable and last anywhere from
A) one to three weeks. B) one to three months. C) one to three years. D) one to three decades.
What is the marginal product of labor?
a. units of output added by a worker b. average variable cost of one unit of output c. revenue added by adding a worker d. price of output minus cost of input
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
A likely reason for the difference in the slopes of the demand curves is that:
A. one market is in equilibrium and the other is not. B. the over-the-counter pain reliever has many substitutes, but the new drug does not. C. one drug is heavily regulated by the Food and Drug Administration and the other is not. D. one drug is new on the market, but the other has been available for a long time.
In a two-sided market with network effects, the platform will likely
A) charge a lower price for end users that are more affected by a positive market feedback. B) charge a higher price for end users that are more affected by a positive market feedback. C) charge a zero price for all end users regardless of the market feedback effects. D) randomly charge end users.