Diseconomies of scale exists over the range of output for which the long-run average cost curve is:
a. rising.
b. constant.
c. falling.
d. None of the answers are correct.
a
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Two projects have the following NPVs and standard deviations:
Project A Project B NPV 200 300 Standard deviation 75 100 Which of the two projects is more risky?
What is a government attempting to do by charging a gasoline tax?
a. Reduce the number of free riders who use public roads b. Encourage private firms to develop public goods c. Discourage free riders from using toll roads d. Shift the demand for gasoline to reduce consumption
Suppose that a country that has a high average wage level agrees to trade with a country that has a low average wage level. Which country can benefit?
a. only the one with a low level of output per person. b. only the one with a high level of output per person. c. both d. neither
Which of the following is an essential part of the market mechanism?
A. Changing relative prices B. Constant prices C. Falling average prices D. Rising average prices