A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because of:
A. diseconomies of scale.
B. economies of scale.
C. diminishing returns to a fixed factor of production.
D. the principal agent problem is generally less severe for larger firms.
Answer: B
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This year a country loaned more to the rest of the world than it borrowed from the rest of the world. In addition, the country has invested more in the rest of the world than other countries have invested in it
The country is currently a ________ and also a ________. A) net lender; creditor nation B) net borrower; creditor nation C) net borrower; debtor nation D) debtor nation; net lender
Hector's wealth is zero, he expects to work for another 45 years at a constant salary of $80,000 and live for another 60 years. If yearly taxes are $20,000 and Hector completely smooths consumption over his lifetime, his annual consumption is
A) $37,500. B) $45,000. C) $60,000. D) $70,000.
Suppose that a technological advance raises total factor productivity. Explain, step-by-step, how the economy adjusts to arrive at a new long-run equilibrium
What will be an ideal response?
The recession that set in after December 2007 can be attributed to: a. an increase in expenditure on war
b. a decline in home prices and an increase in foreclosures. c. an increase in terrorist activities. d. crop failures around the world. e. an increase in oil prices in the international market.