Which of the following provides the best explanation for constant returns to scale?
A. Increasing marginal product
B. Diminishing marginal product
C. Replication of production techniques
D. Constant marginal product
Answer: C
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In an oligopoly with differentiated products, firms ________
A) make positive economic profits B) incur losses C) earn zero economic profits D) do not face competition from its rivals
Describe some of the benefits and costs associated with the emergence of large cities in developing countries
What will be an ideal response?
Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Best Treats' expected profits?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) $3 B) $4.5 C) $2 D) $3.5
Which of the following is likely to have the most price elastic demand?
a. lattés b. doctor's visits c. eggs d. natural gas