In the long run, when marginal cost is above average total cost, the average total cost curve exhibits
a. economies of scale.
b. diseconomies of scale.
c. constant returns to scale.
d. efficient scale.
b
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When the Fed buys government securities, ________ and the money supply ________
A) e rises, falls B) e falls, rises C) c rises, falls D) c falls, rises E) H rises, rises
Julia is a 28-year-old nonsmoking, non-drinking female of normal weight. Because of adverse selection in health insurance,
A) She will be charged less for her premiums than people who are higher risks. B) She is less likely to buy health insurance than the average person, because policy premiums are based on expected medical expenditures of people who are less healthy than she is. C) When she get health insurance, she will be less likely to take care of herself. D) She must get health insurance early in life, and is likely to lose health insurance if she smokes, drinks to excess, or gains weight. E) She is more likely than the average person to buy health insurance, because she is more likely to be offered it.
Which of the following would NOT be a barrier to entry for a particular market?
A) ownership of a patent B) low cost of obtaining initial capital C) the presence of economies of scale D) government regulation
In general, the term "ceteris paribus" means
A. all else equal B. holding everything else variable C. unsettled mathematical paradigms D. Both A and B