Which of the following best defines "economies of scope"?
A) As output expands the cost of producing a good decreases.
B) As output expands the cost of producing a unit of a good decreases.
C) Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases.
D) Costs increase as firms seek to find more consumers.
C
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If Education R Us University thought that it faced an inelastic demand for the regular academic year but an elastic demand for summer school, and it wanted to increase its total tuition revenue, it would want to____ tuition in the regular academic year and ____ tuition for summer school a. Increase; increase
b. Increase; decrease. c. Decrease; increase. d. Decrease, decrease.
Which of the following is a legal barrier to entry?
i. public franchise
ii. government license
iii. patent
A) iii only
B) i and iii
C) ii and iii
D) i, ii, and iii
E) i and ii
Transfer payments
A. fall during recessionary periods. B. buffer aggregate demand during downturns because disposable income and hence, consumption, do not fall as fast as GDP. C. are exclusively a discretionary stabilizer. D. are progressive and prevent income from rising as fast as output.
In the above figure, how many bushels of corn are produced at point "a"?
A. 0 B. 2,500 C. 10,000 D. 1,000