Economies of scale occur when
A) a firm's long-run average total costs fall as it increases the quantity of output it produces.
B) the marginal product of labor is greater than the average product of labor.
C) the demand for a firm's output increases.
D) short-run marginal cost falls.
A
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Joe's income is $500, the price of food (F, y-axis) is $2, and the price of shelter (S, x-axis) is $100. Which of the following bundles is in Joe's opportunity set?
A) 50 units of food, 5 units of shelter B) 200 units of food, 2 units of shelter C) 100 units of food, 1 unit of shelter D) 150 units of food, 3 units of shelter
When U.S. residents buy products that were made in Japan, then ultimately the Japanese want
A) yen. B) dollars. C) Japanese goods. D) goods, including U.S.-made goods.
At the state and local levels of the U.S. government, a majority of government employees work in which of the following areas?
A. Postal service. B. Education. C. Hospitals and other health care. D. Police and corrections.
A firm is currently hiring capital and labor so that MPL/PL > MPK/PK. If the firm wishes to maximize profits it should hire
A. less labor and less capital. B. less labor and more capital. C. more labor and less capital. D. more capital and more labor.