Suppose the long-run cost function is C = 3q. What is the cost-output elasticity for this case?
A) 1
B) 3
C) 1/3
D) 2
A
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Which of the following statements is not accurate about the 1920s?
a. There was a significant increase in mass production and mass marketing. b. There was a significant increase in urbanization. c. The ability of many Americans to afford consumer goods dropped sharply. d. Consumer credit policies were developed and instituted on a large scale for the first time.
Outlet Malls Coach Handbags sells its purses through traditional department stores and specialty shops. But it sells discounted bags through "Coach Brand" shops at outlet malls. Why does it own the outlet mall stores but not the stores at the traditional department stores and specialty shops?
Economic analysis indicates that high tax rates will
a. reduce productive activity. b. retard capital formation. c. promote wasteful use of resources. d. all of the above.
What are sunk costs?
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