Why do firms tend to experience decreasing returns to scale at high levels of output?
A) Firms face more problems with coordinating tasks and communications among managers and workers at very high levels of output.
B) Government tax policy tends to discourage large-scale production operations.
C) Firms face fewer problems with inventory management and marketing as output reaches very high levels.
D) Firms tend to use more capital and less labor at higher levels of output.
A
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Use the figure below to answer the following question.
At equilibrium, consumer surplus is
A. 400. B. 200. C. 150. D. 300.
Because there is a ________ relationship between the price level and the quantity of real GDP supplied, the aggregate supply curve is ________ curve
A) negative; an upward-sloping B) positive; an upward-sloping C) positive; a downward-sloping D) negative; a downward-sloping E) positive; a vertical
"If the United States enters a war in the Middle East, gasoline prices will go up." This statement is an example of
A) a positive statement. B) an argument. C) a normative statement. D) a factual statement.
Imposing a quota on metal softball bats shipped into the United States would likely:
a. increase the price of the bats but decrease the quantity of domestically made bats purchased in the United States. b. increase the price of the bats and the quantity of domestically made bats purchased in the United States c. leave the price of the bats unchanged but decrease the quantity purchased in the United States. d. leave both the price of bats and the quantity purchased in the United States unchanged.