How did production improvements like an assembly line help the production of Model T cars?
A. decreased the supply of Model T cars
B. decreased the demand for Model T cars
C. increased the demand for Model T cars
D. increased the supply of Model T cars
Answer: C
You might also like to view...
If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:
A. economic profits may be positive. B. accounting profits will be zero. C. economic profits are negative. D. accounting profits must be positive.
If the exchange rate between yen and dollars were 120 yen per dollar, when an American purchases a good valued at 600 yen, its cost in dollars would be: a. $5
b. $600. c. $72,000. d. $120.
When large oligopolistic firms negotiate with the unions of their employees, the resulting bargaining process closely resembles
a. perfect competition. b. a dual labor market. c. monopolistic competition. d. bilateral monopoly.
Consider an unregulated monopoly in Figure 8.13. If we look at the firm's long-run average cost, the firm is exhibiting:
A. diseconomies of scale. B. diminishing returns. C. economies of scale. D. increasing returns.