Introduction of the Verson Stamping Machine helped firms in the automobile industry:
A. eliminate diminishing returns in production.
B. achieve greater economies of scale.
C. reach their minimum efficient scale at a lower level of production.
D. shift their AVC, ATC, and MC curves upward.
Answer: B
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Which of the following displays these two characteristics: nonrivalry and nonexcludability?
A) a pure private good B) a pure public good C) a club good D) a common pool resource
Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What area represents the deadweight loss after the imposition of the price floor?
A) J + H B) C + E + J + H C) C + E D) G + H
National wealth includes
a. machinery and equipment. b. buildings. c. land. d. All of these.
If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios would best describe the change existing firms would face as the market adjusts to the long-run equilibrium?
a. an increase in demand for each firm b. a decrease in demand for each firm c. a downward shift in the marginal cost curve for each firm d. an upward shift in the marginal cost curve for each firm