Suppose that the installation, operating, and maintenance costs of a large wind turbine is four times that of a small turbine and has four times the generating capacity. The wind power industry faces:
A. constant returns to scale.
B. economies of scale.
C. increasing marginal cost.
D. diseconomies of scale.
Answer: A
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The variables that determine a household's budget line are
A) its preferences and income. B) its preferences and prices. C) prices and income. D) None of the above are correct.
Answer the following statements true (T) or false (F)
1. The point where the supply curve and the demand curve cross is called the equilibrium. 2. Good weather is an example of a natural condition that affects supply for salmon fishing. 3. The equilibrium quantity is the common quantity where the amount of the product consumers want to buy (quantity demanded) is equal to the amount producers want to sell (quantity supplied). 4. Laws that governments enact to regulate prices are called price barriers. 5. One typical way that economists define efficiency is when it is possible to improve the situation of one party without imposing a cost on another.
Monopolistically competitive firms differentiate their products by:
A. selling products with slightly different physical characteristics. B. selling products at different locations. C. creating a special aura or image for the product with advertising. D. All of these
Any unemployment that does not occur as a part of a normal functioning economy is most likely ________ unemployment.
A. structural B. cyclical C. natural D. frictional