If a firm finds that increases in output lead to increases in long-run average total cost, then it must be experiencing _________ which could be caused by ___________
Fill in the blank(s) with the appropriate word(s).
Answer:
a. diseconomies of scale
b. coordination problems
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In the case before her, Judge Thomas has heard claims by orange growers that to order a stop to orange growing in order to control a pest that thrives on oranges plants but does not harm them would result in a loss of profits of $3 million a year. The pest however causes $2 million of damages to trees owned by pulp manufacturers. The orange growers have not mentioned that they could control the pest at a cost of $1 million per year. High transactions costs have prevented the parties from reaching a private agreement. If she gives the property right to the
a. orange growers, they will then voluntarily control the pest. b. orange growers, they will not control the pest. c. pulp manufacturers, they will pay the orange growers to control the pest. d. pulp manufacturers, the orange growers would offer a side payment of at least $2 million to be able to grow oranges.
Define the term "export."
What will be an ideal response?
Carolyn's Pottery Shop produces vases that sell for $15 each. Assume that labor is the only input that varies for the firm. If Carolyn hires 10 workers, she can produce and sell 500 vases per week. If she hires 11 workers, she can produce and sell 560 vases per week. Carolyn pays each of her workers $400 per week. Which of the following is correct?
a. For the 11th worker, the marginal profit is $500. b. For the 11th worker, the marginal revenue product is $500. c. The firm is maximizing its profit. d. If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.
Which three words or phrases can be used to describe social security?
a. in-kind transfer, welfare, means tested b. cash transfer, social insurance, retirement income c. in-kind transfer, low income requirement, health care service d. cash transfer, low financial resources required, provides food