In the above figure, the long-run average cost curve exhibits economies of scale
A) between 5 and 10 units per hour.
B) between 10 and 20 units per hour.
C) between 20 and 25 units per hour.
D) along the entire curve.
A
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If the quantity of soccer balls demanded is represented by the demand equation QD = 80 - 2P, then to solve for the price of soccer balls, the equation would be rewritten as
A) P = 40 - 0.5QD. B) P = 1.6QD + 80. C) P = 80 - QD. D) P = QD + 160.
Graphically show why one electric company can operate more cheaply than two.
What will be an ideal response?
Economists refer to consumers' desire for goods now rather than in the future as
a. a positive rate of time preference. b. the rational expectations hypothesis. c. roundabout methods of production. d. the inflationary premium.
In the short run, a firm will eventually experience rising average total costs because of
a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing returns.