As output increases, a typical firm's unit costs
a. decrease because the firm buys its inputs in large quantities
b. increase because the supply of inputs increases
c. remain constant
d. increase due to the increasing scarcity of resources
e. decrease as firms take advantage of diseconomies of scale
D
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What determines if a person is in the labor force?
What will be an ideal response?
Discuss the likely impact of each of the following on the unemployment rate:
a. The length of time workers are eligible to receive unemployment insurance payments is cut in half. b. The government passes a law making labor unions illegal. c. The minimum wage is raised by 50 percent. d. The government funds an Internet site where companies can post job openings at no charge.
Evidence from business cycle fluctuations in the United States indicates that
A) a negative relationship between money growth and general economic activity exists. B) recessions are usually preceded by declines in bond prices. C) recessions are usually preceded by dollar depreciation. D) recessions are usually preceded by a decline in the growth rate of money.
Which of the following is false? a. The price elasticity of demand measures the responsiveness of quantity demanded to a change in price
b. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price. c. If demand is elastic, it means the quantity demanded changes by a relatively larger amount than the price change. d. All of the above are true.