If a farmer produces 1000 bushels of corn using ten acres of land and one tractor and is able to produce 2000 bushels of corn using twenty acres of land and one tractor, the farmer has
A) increasing returns to scale.
B) constant returns to scale.
C) decreasing returns to scale.
D) no returns to scale.
A
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In the dominant firm model, the fringe firms
A) are price takers. B) maximize profit by equating average revenue and average cost. C) determine their price and output before the dominant firm determines its price and output. D) all of the above E) none of the above
Those who favor an active approach to policy and those who favor a passive approach disagree not only on how quickly the government can act but also on how stable the economy basically is
a. True b. False Indicate whether the statement is true or false
When price is above the equilibrium level, suppliers offer more than demanders wish to buy
a. True b. False Indicate whether the statement is true or false
Most economists are against rent control, in part, because it:
a. leads to surpluses b. encourages landlords to build too many apartments c. Discourages tenants from searching for apartments d. encourages landlords to overspend in upkeep and maintenance on apartments e. none of the above