When there are economies of scale,
a. per-unit costs increase as output increases
b. per-unit costs decrease as output increases
c. per-unit costs are constant as output increases
d. output does not affect per-unit costs
b
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Monetarists argue that changes in the money supply
A. lead directly to recessions and expansions. B. do not affect GDP. C. lead to direct changes in spending. D. work indirectly via increased investment.
If the real interest rate is greater than the nominal interest rate in an economy:
A) inflation must be negative in the economy. B) inflation must be positive in the economy. C) inflation must be zero in the economy. D) the nominal interest rate must be equal to zero.
Vaccinating people against a communicable disease such as influenza not only reduces the chances that the person vaccinated will catch the disease but also reduces the probability that an epidemic of the disease will occur
Which of the following statements is true? A) Reducing the chances that the person vaccinated will catch the disease is a private benefit while reducing the probability of an influenza epidemic is a social benefit. B) Vaccinating people against communicable diseases yields private benefits in excess of social benefits. C) Reducing the chances that the person vaccinated will catch the disease is a private cost while reducing the probability of an influenza epidemic is a social benefit. D) The benefits of the influenza vaccination outweigh the costs.
The short-run price elasticity of demand for airline travel is .05, while the long-run elasticity is 2.36 . This means that a significant increase in airline ticket prices will cause airline companies to:
a. collect less revenue from short-notice travelers. b. collect more revenue from travelers who book well in advance. c. lose money on short-notice travelers. d. collect less revenue from travelers who book well in advance. e. lose many of its short-notice travelers.