Firms that produce an information product experience short-run economies of operation because
A. the firm will always produce in the decreasing portion of the marginal cost curve.
B. of the U-shaped nature of the average total cost curve.
C. the average total cost of producing and selling the product declines as output increases.
D. of the U-shaped nature of the average variable cost curve.
Answer: C
You might also like to view...
Answer the following statements true (T) or false (F)
1. If member banks need to borrow reserves, they must do so through the discount window. 2. The discount rate at all Federal Reserve Banks is always identical. 3. The Federal Reserve System is completely independent of the government. 4. Raising the reserve requirement or the discount rate always decreases the money supply. 5. The Fed’s ability to influence the money supply through its open-market operations is independent of a commercial bank’s desire to make loans.
The lower the required reserve ratio,
A) the less money that can be loaned at each round of the lending process. B) the larger the simple deposit multiplier. C) the smaller the simple deposit multiplier. D) the fewer excess reserves there are at each round of the simple deposit multiplier process. E) a, c, and d
A key objective of the gold standard was to
A. create a fixed exchange rate system between countries. B. allow nations to maintain their gold reserves. C. create a flexible exchange rate system between countries. D. allow nations to tax its citizens in gold.
While in office, President Obama discussed raising income taxes for individuals earning over $250,000 in income. Explain how these higher income taxes would affect the aggregate demand curve
What will be an ideal response?