The decreasing portion of a firm's long run average cost curve is attributable to:
a. economies of scale.
b. diseconomies of scale.
c. increasing marginal cost.
d. constant returns to scale.
a
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The figure above illustrates the current market for apartments in Washington, D.C
a. If the local government imposes a price ceiling of $1,500 per month, is there a shortage? If so, how much? If not, why not? b. If the local government imposes a price ceiling of $900 per month, is there a shortage? If so, how much? If not, why not?
Consider a BMW automobile plant. If the price of BMWs increase by 10 percent and the money wage rate and other costs ________, there will be ________
A) increase by 10 percent; an increase in BMWs profits B) do not change; an increase in BMW's production and profit C) increase by 10 percent; an increase in BMWs production D) do not change; no change in production
The evidence on the potential for input substitution in the service sector suggests that:
A) there may be more opportunities for input substitution than was previously thought, especially in areas such as health care, financial services, and the even the fine arts. B) the traditional view that the potential for input substitution is extremely limited is correct. C) while one or two areas of the service sector may see a small amount of input substitution, most areas will see little or none. D) input substitution will only be feasible so long as the production process requires a relatively small amount of labor to begin with.
Deposits that banks keep on hand rather than lend out or invest are known as: a. reserves
b. securities. c. loans. d. bonds.