In an increasing-cost industry, expansion of output
A) causes input prices to rise as demand for them grows.
B) leaves input prices constant as input demand grows.
C) causes economies of scale to occur.
D) occurs under conditions of increasing returns to scale.
E) occurs without diminishing marginal product.
A
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Probably the most important source of efficiency in production is
a. investing in more capital goods. b. consuming rationally. c. expanding the production possibilities frontier. d. increasing inputs of energy and raw materials. e. the specialization of labor.
If the economy is at the natural rate of unemployment...
What will be an ideal response?
All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA) except
A) pharmaceutical firms and health insurance firms pay new taxes. B) investors earning more than $200,000 pay a new tax on their investment income. C) beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated. D) workers earning more than $200,000 pay higher Medicare payroll taxes.
What incentive does price cap regulation attempt to give the firm? How does it give the firm this incentive?
What will be an ideal response?