When more and more units of a variable factor are combined with constant amount of a fixed factor, such that the variable factor becomes abundant compared to the fixed factor, the output will eventually:
a. increase at an increasing rate.
b. increase at a diminishing rate.
c. increase at a constant rate.
d. become constant.
e. fall to zero.
b
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Over ninety-five percent of all new businesses that open each year in the United States employ ________ workers
A) only one or two B) fewer than 20 C) 50 or more D) over 100
Suppose market demand is p = 10 - Q. Firms have a fixed cost of five and no marginal cost. If firm A is the incumbent, can it deter the entry of its rival, firm B?
What will be an ideal response?
Which of the following accurately explains why short-run profits lead to zero economic profits in the long run?
a. Short-run profits causes supply to decrease, thereby decreasing price and making it equal to ATC. b. Short-run profits causes supply to decrease, thereby increasing price and making it equal to ATC. c. Short-run profits causes supply to increase, thereby decreasing price and making it equal to ATC. d. Short-run profits causes supply to increase, thereby increasing price and making it equal to ATC.
Refer to the above information. If planned investment was $20 billion, government purchases of goods and services were $20 billion, and taxes and net exports were zero, then the equilibrium level of GDP would be:
The table shows a consumption schedule. All figures are in billions of dollars.
A. $600 billion
B. $640 billion
C. $680 billion
D. $720 billion