Suppose Ford can triple its production of 150s by tripling its production facility for those trucks. This indicates the presence of:
a) the law of diminishing returns.
b) minimum efficient scale.
c) constant returns to scale.
d) diseconomies of scale.
e) economies of scale.
Ans: c) constant returns to scale.
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A change in monetary policy affects
A) consumption expenditure, government expenditures on goods and services, and net exports. B) consumption expenditure, productivity, and net exports. C) government expenditures on goods and services because it affects the government's budget balance. D) consumption expenditure, investment, and net exports. E) investment, government expenditures on goods and services, and net exports.
One difference from private insurance programs is that social insurance programs:
A. are universally offered to everyone. B. use a sliding scale of payment based on ability to pay. C. serve everyone who meets baseline eligibility requirements. D. None of these is true.
Use the following table to answer the next question.OutputATC-1ATC-2ATC-3ATC-41,500$10$15$20$302,00091217252,50081015203,00012713183,50015611164,00018107144,50020128125,00024151195,500291913126,00035251514Plant sizes get larger as you move from ATC-1 to ATC-4.At what level of output are economies of scale exhausted by this firm?
A. 3,500 units B. 4,000 units C. 2,500 units D. 5,500 units
If total revenue exceeds fixed cost, a firm
A) is making short-run profits. B) should produce in the short run. C) has covered its variable cost. D) may or may not produce in the short run, depending on whether total revenue covers variable cost.