If a hospital is experiencing economies of scale,
a. its average cost curve is positively sloped as output increases.
b. its average cost curve is negatively sloped as output increases.
c. it should reduce its output level to lower costs.
d. quality is falling as output is rising.
e. both b and c are true.
B
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The table gives data on the production and prices in a small economy. Use 2012 as the base period. Using the chained-price method, what is the growth rate of real GDP from 2012 to 2013?
What will be an ideal response?
If real GDP is $20 trillion, consumption is $14 trillion, planned investment is $4 trillion, government purchases are $4 trillion, net exports are -$1 trillion, then the unintended inventory adjustment is:
a. -$2 trillion. b. -$1 trillion. c. $1 trillion. d. $2 trillion.
Suppose a perfectly competitive firm faces the following cost and revenue conditions: ATC = $25.50; AVC = $20.50; MC = $25.50; MR = $28.50. The firm should
A. shut down. B. continue to produce its current output. C. increase output. D. decrease output.
In the 1970s we had _____ recessions and in the 1980s we had _____ recessions.
Fill in the blank(s) with the appropriate word(s).