An airlines realizes that instead of offering free checked in baggage, they could put a charge on checked baggage without the demand for the tickets decreasing. The space saved can be used to carry priority mail packages, with hardly any additional costs. The airlines has realized
a. Economies of scale
b. Economies of scope
c. Diseconomies of scale
d. Diseconomies of scope
b
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In the production function Y = AF(K, N), A is ________, K is ________, and N is ________
A) total factor productivity; the capital stock; the number of workers employed B) total factor productivity; investment; the number of workers employed C) the productivity of labor; the capital stock; the size of the labor force D) the productivity of labor; investment; the size of the labor force
Consensus research concludes that medical technology is responsible for much of the increase in medical care spending over the past several decades.This probably means
a. That better availability means wider use. b. That poorer availability means less use and poorer health outcomes. c. That medical care is increasingly expensive d. All of the above are correct.
The government will have to subsidize a natural monopoly in the long run if regulators choose to pursue:
a. marginal cost pricing b. fair-return pricing. c. per se pricing.
If frictional unemployment increased, but structural unemployment decreased by more, the natural rate of unemployment:
a. Would increase b. Would not change c. Would decrease d. Would be affected in an unpredictable manner