Diseconomies of scale at the firm level occur
a. wherever the firm's long-run average cost curve is horizontal
b. wherever the firm's long-run total cost curve is horizontal
c. where marginal cost equals marginal revenue
d. if a firm becomes "too large"
e. if any of the firm's plants becomes "too large"
D
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The above table shows Tammy's total utility from videos and CDs. If Tammy has $110 to spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then Tammy maximizes her utility by purchasing
A) 3 CDs and 5 videos. B) 5 CDs and 1 video. C) 4 CDs and 3 videos. D) none of the above.
According to the life-cycle hypothesis, as consumers get older ________
A) the marginal propensity to consume out of wealth and income rise B) the marginal propensity to consume out of wealth falls and the marginal propensity to consume out of income rises C) the marginal propensity to consume out of wealth rises and the marginal propensity to consume out of income falls D) the marginal propensity to consume out of wealth and income fall
One theory that predicts sustained wage and rent differentials is based on the idea that your accumulation of human capital raises the productivity of the other workers and the physical capital in your locale. In this situation, human capital accumulation creates
a. a signaling equilibrium. b. external benefits. c. compensating differentials. d. intertemporal substitutions.
Which of the following is not a tool of monetary policy?
a. open market operations b. reserve requirements c. changing the discount rate d. increasing the government budget deficit