A Detroit business advertises, "The more we sell, the lower the price, and the lower the price, the more we sell." This firm is experiencing
a. decreasing returns to scale.
b. constant returns to scale.
c. increasing returns to scale.
d. abnormal demand patterns.
c
You might also like to view...
The number of times per year that a dollar is spent on final goods and services defines
A) the income velocity of money. B) the money supply. C) the price index. D) GDP.
What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
a. There would be an increase in the amount of loanable funds borrowed. b. There would be a reduction in the amount of loanable funds borrowed. c. There would be no change in the amount of loanable funds borrowed. d. The change in loanable funds is uncertain.
In the long run inflation is explained by __________. For countries that had hyperinflation this source of inflation arose primarily because the government __________
Fill in the blank(s) with correct word
If we are currently at point T, we can get to point S in the long run
A. through economic growth over a period of years.
B. immediately by using resources more efficiently.
C. immediately by reducing the unemployment rate.
D. immediately through technological development.