Decreasing returns to scale may occur because increasing the amount of inputs used
A) increases specialization.
B) always increases the amount of output produced.
C) may cause coordination difficulties.
D) increases efficiency.
C
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Total fixed cost are costs that are fixed with respect to:
a. the rate of output. b. time. c. technology. d. the minimum wage or price supports.
In a simplified banking system, the money multiplier falls as the required reserve ratio rises
a. True b. False Indicate whether the statement is true or false
Helga owns Viking, Inc, started with her $100,000 inheritance. Helga's accountant informs her that her firm earned a profit of $100,000 last year, and that if she chooses to invest the money she can expect a 10% return. If Helga did not run Viking, she would not work. What were Helga's economic profits last year?
a. Zero b. $100,000 c. $90,000 d. $95,000
Which of the following would cause price to increase?
a. an increase in supply b. a decrease in demand c. a surplus of the good d. a shortage of the good