In the short run, a firm will eventually experience rising per-unit costs because of:
a. economies of scale.
b. diseconomies of scale.
c. the law of supply.
d. the law of diminishing returns.
d
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Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result
A) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease. B) aggregate demand will increase by 2.5%. C) the purchasing power of wages will rise if wages increase by 2.5%. D) the short-run aggregate supply curve will shift to the left as wages increase.
The aggregate demand curve slopes downward because of
a. the real wealth effect, the interest rate effect, and the price level effect b. the real wealth effect, the money supply effect, and the international trade effect c. the interest rate effect, the international trade effect, and the real GDP effect d. the real wealth effect, the interest rate effect, and the international trade effect e. the real wealth effect, the interest rate effect, and the net export effect
Discuss the differences between a tariff and a quota. Explain why quotas are considered to be a greater threat to competition than tariffs.
What will be an ideal response?
Demand for a country's independently floating currency is a function of the demand for that country's goods, services, and financial assets.
a. true b. false