A firm produces leather handbags and leather shoes. If there are economies of scope, the product transformation curve between handbags and shoes will be
A) a straight line.
B) bowed outward (concave).
C) bowed inward (convex).
D) a rectangle.
B
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According to your text, the "market economy" can best be understood as
A) an institution created by British merchants around the time of Smith's Wealth of Nations. B) an extremely complex institution that emerged out of individuals specializing and trading among each other. C) an institution unique to America. D) an institution that could not exist in the absence of regulation.
Given the information in the table shown, what is the marginal revenue when 25 units are produced?
This table shows price and quantity produced for a single firm in a perfectly competitive market.
A. $250
B. $25
C. $10
D. $20
Which of the following is an accurate statement concerning minimum wage?
a. Minimum wage was originally formed to help immigrant families. b. Between state and federal minimum wage laws, an employee is entitled to the higher one. c. Almost all states have minimum wage laws. d. In 2014, the federal minimum wage was set at $10 an hour.
The long-run average cost of producing 12 units of output is $54; the long-run average cost of producing 13 units is $56. These numbers illustrate:
A. diseconomies of scale. B. economies of scope. C. economies of scale. D. diminishing marginal productivity.