When economies of scale exist, an increase in the level of output will lead to:
a. a decrease in cost per unit.
b. an increase in cost per unit.
c. a decrease in total cost
d. both a. and c. above
a
You might also like to view...
If a non-binding price floor were to be set in the market in the graph shown, it could be set at:
A. $30.
B. $23.
C. $16.
D. All of these would be binding price floors for this market.
Regarding U.S. antitrust activity, the rule of reason was expressed in the
a. Standard Oil case. b. Robinson-Patman Act. c. Clayton Act. d. ALCOA case.
Ceteris paribus refers to all of the following ideas except
a. changing just one variable at a time b. holding everything else constant c. everything else being equal d. one-to-one cause and effect relationships e. in the absence of other influences
A nearly vertical aggregate supply curve occurs
A. when the economy is producing close to the maximum output level. B. whenever an economy is in a recession. C. in an economy with considerable cyclical unemployment. D. in an economy with much idle capacity.