When long-run average costs increase as a result of industry growth, there are
A. internal diseconomies.
B. internal economies.
C. external economies.
D. external diseconomies.
Answer: D
You might also like to view...
If the population of Country A has a higher percentage of retirees than the population of Country B, then:
a. the demand for loanable funds in Country A would be higher than the supply of loanable funds in Country B. b. the demand for loanable funds in Country A would be higher than the supply of loanable funds in Country A. c. the supply of loanable funds in Country A would be higher than the supply of loanable funds in Country B. d. the supply of loanable funds in Country A would be lower than the supply of loanable funds in Country B.
Which of the following is a valid effect of monopoly power?
A. Desirable effects on the distribution of wealth B. Efficient resource allocation C. Fostering of innovation D. Obstacle to efficiency
Three business people meet for lunch at an Indian restaurant. They decide that each person will order an item off the menu, and they will share all dishes. They will split the cost of the final bill evenly among each of the people at the table. When the food is delivered to the table, each person faces incentives similar to the
a. consumption of a common resource good. b. production of a public good. c. consumption of a club good. d. production of a private good.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher