When economies of scale exist,
a. production costs per unit increase as output expands.
b. production costs per unit decline as output expands.
c. total production costs decrease.
d. total production costs increase.
b
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Which of the following influences people's buying plans and does not shift the demand curve?
A) the price of the good B) the prices of related goods C) income D) preferences
What costs associated with the new auto-emission standards arise from decisions made in self-interest and in the social interest?
What will be an ideal response?
Potential GDP would decrease if
A. technical progress improves. B. capital stock increases. C. the number of hours worked increases. D. Congress passes a 32-hour work week.
If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the
A) price of its product will be lower in the future than it is today. B) price of its product will be higher in the future than it is today. C) price of inputs will be lower in the future than they are today. D) demand for the product will be lower in the future than it is today.