Does it make sense to consider the returns to scale of a production function in the short run?
A) Yes, this is an important short-run characteristic of production functions.
B) Yes, returns to scale determine the diminishing marginal returns of the inputs.
C) No, returns to scale is a property of the consumer's utility function.
D) No, we cannot change all of the production inputs in the short run.
D
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The major economic cost of growth is:
A. investment in stocks and bonds. B. higher interest rates. C. consumption sacrificed for capital formation. D. higher inflation rates.
Shortly after the turn of the century, U.S. Steel owned most of the iron ore reserves in the country. This is an example of
A) monopoly due to government restrictions. B) a barrier to entry from owning an important resource. C) a barrier to entry from scale economies. D) monopoly due to governmental entry restrictions.
Which statement about a market at equilibrium price and quantity is false?
A. The market could not have achieved equilibrium without government interference. B. Some buyers have unsatisfied wants. C. Producer surplus plus consumer surplus is maximized. D. Gains from trade are maximized.
Refer to the graph showing the demand for books. The quantity demanded when price is $16.00 is:
A. 4 books. B. 8 books. C. 2 books. D. 6 books.