All of the following are true regarding managerial diseconomies except which one?
A) Managerial diseconomies are a cost associated with vertical integration.
B) An increase in the required expertise of managers is a type of managerial diseconomy.
C) Managerial diseconomies incentivize vertical integration.
D) Increased complexity of the firm is a type of managerial diseconomy.
C) Managerial diseconomies incentivize vertical integration.
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What will be an ideal response?
Many economists believe that the collapse of world trade and the depression in the 1930s were linked by a decrease in real income caused by producing on the basis of comparative advantage
a. True b. False Indicate whether the statement is true or false
Market demand curves are found by
a. vertically summing individual demand curves. b. horizontally summing individual demand curves. c. summing individual demand curves in a parallel fashion. d. adding the slopes of individual demand curves.
Refer to the diagram, in which S 1 and D 1 represent the original supply and demand curves and S 2 and D 2 the new curves. In this market:
A. the equilibrium position has shifted from M to K.
B. an increase in demand has been more than offset by an increase in supply.
C. the new equilibrium price and quantity are both greater than originally.
D. point M shows the new equilibrium position.