If a firm has a long-run average cost of $2 when it produces 4,000 units of an input and has a long-run average cost of $1 when it produces $10,000 units and the firm needs 10,000 units of the input, the firm ________ experience economies of scale, which makes the firm ________ likely to make the input rather than buy it.
A) does not; more
B) does; less
C) does; more
D) does not; less
C) does; more
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An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is: a. greater than 1
b. less than 1 but more than zero. c. negative. d. exactly equal to zero. e. exactly equal to one.
In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?
a. "Price supports are important because America should preserve the small family farm." b. "Without price supports, the price of wheat and corn will fall by over twenty percent." c. "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." d. "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in the United States."
Public choice theory applies ____ principles to politics
a. altruistic b. ceteris paribus c. economic d. the fallacy of composition
For which of the following goods is the income elasticity of demand likely to be largest?
a. poultry products b. meals at restaurants c. lemonade d. used books e. paperback mystery novels