(Appendix) The defining characteristics of increasing returns to scale may be summarized as
A. F(cK,cL) < cF(K,L).
B. F(cK,cL) > cF(K,L).
C. F(cK,cL) = cF(K,L).
D. Q = min(aK,aL).
Answer: B
You might also like to view...
The price system has
A) prices fixed by the government. B) prices fixed by the seller. C) voluntary exchange. D) prices fixed by the producer.
The slope of the budget line represents:
A. the budget rate of substitution. B. the opportunity rate of substitution. C. the market rate of substitution. D. the marginal rate of substitution.
Refer to the above figure. Which of the following statements about panel D in the figure is TRUE?
A. The figure is in error since it has marginal cost intersecting the ATC curve at a point other than the minimum of ATC. B. The figure is in error since it doesn't show the monopolistic competitor making profits in the long run. C. The figure represents a long-run equilibrium for a monopolistic competitor. D. The figure represents an industry long-run equilibrium for monopolistic competition.
Explain how the decision by parents to not immunize their children, hoping that their children will not get sick because other parents have had their children immunized, is an example of free riding. How is this behavior dangerous to the public?
What will be an ideal response?