As a firm increases its output, its average total cost decreases. This is an outcome of:
A) the Law of Demand.
B) economies of scale.
C) diseconomies of scale.
D) the Law of Diminishing Returns.
B
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If all players in a game have a dominant strategy, then there can only be one pure strategy Nash equilibrium to the game.
Answer the following statement true (T) or false (F)
Which of the following creates an incentive to increase the amount of an activity?
A) an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity B) a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity C) constant marginal cost and constant marginal benefit of the activity D) None of the above create an incentive to increase the amount of an activity.
Rent is defined as the
a. payment received for the use of an asset b. cost to an entrepreneur for using his or her own resources c. difference between what a resource receives and the cost of bringing that resource into production d. difference between the total revenue earned from selling a good and the cost of bringing the good into being e. selling value of land
Refer to Exhibit 2-9. For Adam, the opportunity cost of producing one unit of good A is ____________ unit(s) of good B.
 ANSWER 5.png)