If a firm is experiencing constant returns to scale, then the long-run average cost curve is
A) falling.
B) rising.
C) horizontal.
D) shifting
C
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When the federal government gives a grant to a state or local government without restrictions on use, this is known as
A. revenue sharing. B. block grants. C. endowments. D. tax shelter.
Explain why the marginal cost of production must increase if the marginal product of a variable resource is decreasing
What will be an ideal response?
The city of Burlington gets very hot each summer and very cold each winter. We would expect the demand for lemonade to:
A. increase constantly. B. decrease each summer and increase each winter. C. increase each summer and decrease each winter. D. decrease constantly.
Which of the following is an example of a change in derived demand?
A. The demand for ice cream increases during a heat wave. B. The demand for large pickup trucks falls when the price of gasoline increases. C. The demand for buns increases when the price of food truck hot dogs increases. D. The demand for sunscreen falls when the local swimming pool increases prices.