At McDonald's, economies of scale at the plant (or restaurant) level occur
a. over the range of output for which that restaurant's average cost curve is upward sloping
b. over the range of output for which that restaurant's average cost curve is horizontal
c. over the range of output for which that restaurant's average cost curve is downward sloping
d. at all levels of output
e. only in the short run
C
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When production does not proceed on the basis of comparative advantage, resources are expended on their most efficient uses
a. True b. False Indicate whether the statement is true or false
The equation of exchange which is MV = PY is an identity, which means it is true by definition. If you think carefully, what variable in the equation by the way it is defined really makes the equation of exchange an identity?
What will be an ideal response?
Refer to the diagram. Total utility:
A. increases so long as additional units of Y are purchased.
B. becomes negative at 4 units.
C. increases at a diminishing rate, reaches a maximum, and then declines.
D. is maximized at 2 units.
The graph shown portrays a subsidy to buyers. Before the subsidy is put in place, the producers sold ________ units and received ________ for each of them.
A. 150; $24 B. 150; $40 C. 100; $46 D. 100; $30