Suppose Toyota produces 100,000 cars per year at its California plant at an average cost of $6,000 and it doubles output and total costs by building an identical plant in Kentucky. Toyota has exhibited
a. diminishing marginal returns
b. economies of scale
c. constant average costs
d. an upward-sloping planning curve
e. production inefficiency
C
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The private information revealed during screening typically refers to information:
A. that is personal. B. that is embarrassing. C. that is not public. D. that individuals generally do not want anyone to find out.
Which of the following is the best example of a "screen" being used to anticipate the effects of "adverse selection"?
A. Insurance companies require all homeowners to have smoke detectors. B. A health insurance company creates a single, large "pool" of insureds C. An auto insurer awards cash rebates to existing policyholders with good driving records. D. Prospective computer programmers must demonstrate their coding skills in person during the actual job interview.
In every economic system, choices must be made because resources are:
A)Unlimited, but economic wants are limited B)Limited, and so are economic wants C) Finite, but economic wants are insatiable D)infinite, but econmic wants are finite
Functional Uform subunits work best in:
A. small, specialized companies. B. companies that produce many products. C. industries with rapidly changing technology. D. large, geographically spread-out companies.