An increase in long-run average costs resulting from decreases in output is
A. attributed to economies of scale.
B. attributed to diseconomies to scale.
C. attributed to constant returns to scale.
D. attributed to the law of diminishing marginal product.
Answer: A
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Laborland has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join Laborland's work force. Which of the following will happen in this case if Laborland's capital stock remains unchanged?
A) The country's income per worker will increase. B) The total efficiency units of labor in the economy will decrease. C) The relationship between output and capital stock becomes negative. D) The marginal contribution of labor to Laborland's output will fall.
A tariff is a tax that is imposed by the ________ country when an ________ good crosses its international boundary
A) exporting; imported B) importing; exported C) exporting; exported D) importing; imported
A company does not need to know the price of each resource it employs if it wants to determine whether or not it is achieving
A) technological efficiency. B) economic efficiency. C) accounting efficiency. D) managerial efficiency.
The primary difference between an American and European option is:
A) American options must be exercised on the expiration date B) European options must be exercised on the expiration date C) American options may be exercised at any point up until the expiration date D) European options may be exercised at any point up until the expiration date