Someone once said that Chevrolet is so large that if it shakes its tail, its takes two years for its head to notice it. This is an example of
a. profit centers
b. economies of scale
c. diseconomies of scale
d. diminishing marginal returns
e. diminishing marginal cost
C
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Refer to Figure 9.6. The government policy pictured is
A) a price ceiling of $20. B) a price support of $20. C) a price ceiling of $15. D) a price support of $15. E) A quota of 600.
Suppose a Starbucks tall latte costs $4.00 in the United States, 5.00 euros in the euro area and $2.50 Australian dollars in Australia. Nominal exchange rates are .80 euros per dollar and 1.4 Australian dollars per U.S. dollar. Where does purchasing-power parity hold?
a. both the euro area and Australia b. the euro area but not Australia c. Australia but not the euro area d. neither the euro area or Australia
For a firm in the long-run, an increase in the market wage rate will cause it to reduce the employment of labor. With fewer workers, the firm's marginal revenue product for capital
a. shifts downward leading the firm to use less capital. b. shifts upward leading the firm to use more capital. c. twists so that is becomes more elastic d. is not affected.
How would a decrease in price of Blu-Ray movies affect the demand for Blu-Ray players?
A. Decrease the demand B. Increase the demand C. Increase in supply D. Increase in quantity demanded