Suppose the long-run average cost curve is U-shaped. When LRAC is in the increasing stage, there exist:

A. economies of scale.
B. diseconomies of scope.
C. diseconomies of scale.
D. economies of scope.


Answer: C

Economics

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Which of the following will cause the average cost curve of making cigarettes to shift?

A) a $5 million penalty charged to each cigarette maker B) a $1 per pack tax on cigarettes C) a $1 an hour wage increase paid to all cigarette production workers D) All of the above

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The CPI's approach is to

a. track the cost of the CPI market basket, which is the collection of goods and services that the typical consumer buys. b. track the cost of the CPI market basket, which is the collection of every good and service that is for sale in the U.S. c. track the cost of housing, and food and beverage expenditures. d. track the cost of the CPI market basket, which is the collection of every good that is for sale in the U.S. e. track the cost of the CPI market basket, which is the collection of goods that the typical consumer buys.

Economics

What would be the price of a perpetuity bond that has a $100 interest payment and a 4% yield?

a) $1,000 b) $2,000 c) $2,500 d) $4,000

Economics

If the price of milk shakes was $3.00 each, your consumer surplus would be

Demand and Utility Table for Milk Shakes
A. $10.50.
B. $6.00.
C. $3.50.
D. $1.50.

Economics