An industry whose total output can be increased without a change in long-run per-unit costs is a(n)
A) increasing-cost industry.
B) constant-cost industry.
C) break-even cost industry.
D) decreasing-cost industry.
B
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In the coordination failure model, the most likely explanation of business cycles are
A) money supply shocks. B) government spending shocks. C) total factor productivity shocks. D) fluctuations between "good" and "bad" equilibria.
In economic analysis, any amount of profit earned above zero is considered "above normal" because
A) normally firms are supposed to earn zero profit. B) this would indicate that the firm's revenue exceeded both its accounting and opportunity cost. C) this would indicate that the firm was at least earning a profit equal to its opportunity cost. D) this would indicate that the firm's revenue exceeded its accounting cost.
Toyota's just-in-time system is an example of
A) backward (upstream) integration. B) quasi-vertical integration. C) using transfer pricing to avoid price controls. D) horizontal, downstream integration.
The demand for Healthy Bars, a health snack bar, is Qd = 10 - (2 × P) and Healthy Bars has a constant average cost of $3 per snack bar. If Healthy Bars wants to package their bars to create an all-or-nothing offer and puts the profit-maximizing number of bars into each package and charges the profit-maximizing price for the package, what is their profit?
A) $16 B) $12 C) $6 D) $4