A theory is a deliberate simplification or abstraction of factual relationships
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements correctly identifies a similarity between network effects and economies of scale?
A) Both are related to costs incurred by a firm. B) Both act as barriers to entry in a market. C) Both act as disincentives to monopolies. D) Both are related to the number of consumers using a firm's product.
Total utility describes
A) the benefit gained from all consumption. B) an increase in consumption multiplied by the gain in utility. C) total consumption multiplied by marginal utility. D) total consumption divided by marginal utility.
During the Great Depression, economists first began studying the relationship between
A) changes in nominal GDP and changes in real GDP. B) changes in aggregate expenditures and changes in GDP. C) changes in stock prices and changes in price controls. D) changes in GDP and changes in interest rates.
The total cost of production is measured by the sum of fixed and variable costs
Indicate whether the statement is true or false