Refer to Figure 21.5. Diseconomies of scale begin to occur
A. After the third factory.
B. After the first factory.
C. After the fourth factory.
D. At the minimum points on all five ATC curves.
Answer: A
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In an open economy, the government deficit is 600 and saving exceeds investment by 500, so in equilibrium the trade deficit (IM? X) must be
A. 100 B. 200 C. 300 D. 700
Applied to perfectly competitive labor markets, the marginal principle tells firms to hire workers until:
A. the marginal revenue product of the last worker hired equals the wage. B. marginal productivity begins to diminish. C. average total costs are minimized. D. the price of the product equals the wage of the worker.
Suppose you have a choice between studying one more hour for your history exam or studying one more hour for your psychology exam. Your decision on what to study should be based on:
a) the additional benefits of studying for each class. b) which class you like the most. c) how much time you have already studied for each class. d) your current average scores in each class.
Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $625 per robot. It follows that producing one more robot will cause this firm's
A. profits to remain unchanged. B. total cost to decrease. C. profits to increase. D. profits to decrease.