Which of the following statements is true?
a. When long-run average total costs are increasing, the firm enjoys economies of scale.
b. Most industries exhibit long-run average costs that are shaped like an upside-down U.
c. Constant returns to scale occur when the short-run average-total-cost curve is horizontal.
d. When long-run average total costs are increasing, the firm has diseconomies of scale.
e. Constant returns to scale are never present in the real world.
d
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Which of the following is true of resources?
a. Capital resources include manual labor. b. Natural resources are available in nature and are available at a zero price. c. Labor includes the skills and training people acquire to use in production. d. Technological know-how is an example of a natural resource. e. Human capital is the technical term for a robot.
What is likely to happen to the demand for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?
A. The demand for firemen will increase as the supply of firemen falls when old buildings are replaced with newer buildings. B. The demand for firemen will remain unchanged as firemen do not build new construction. C. The demand for firemen will remain unchanged as long as the property tax-base increases when the new construction projects are completed. D. The demand for firemen will increase as long as wages paid to workers on new construction projects exceed the minimum wage. E. The demand for firemen will fall as the demand for fire protection services falls.
Answer the following statement(s) true (T) or false (F)
1. The extent to which a change in price affects quantity demanded may vary considerably from product to product and over the various price ranges for the same product. 2. A demand curve, or a portion of a demand curve, can be elastic, inelastic, or supply elastic. 3. A good is elastic if the percentage change in quantity demanded is greater than the percentage change in price. 4. A good is inelastic if quantity demanded changes proportionally less than the price changes 5. The steeper the demand curve passing through a given point, the more elastic the demand.
An example of a ________ would be the government setting the price of coffee below the equilibrium price.
A. black market B. rational expenditure C. price ceiling D. non-income tax