List three reasons why a firm might experience economies of scale
What will be an ideal response?
(1.) Standardized production techniques.
(2.) Inputs purchased in volume.
(3.) Inputs produced by the firm rather than purchased elsewhere.
(4.) Lower transportation costs when products are shipped in bulk.
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The ratio of equity to total assets is a measure of a bank's __________ risk
A) credit B) leverage C) interest rate D) liquidity
Appendix: A Dutch auction implies all of the following except
a. more than one unit sale available b. higher prices later in the auction c. identical expected seller revenue for common value items d. greater expected seller revenue in estate sales with risk-averse bidders
Which of the following is an example of a fiscal policy?
a. Raising the discount rate b. Reducing the reserve requirement c. Reducing tax rate d. Pegging the currency
To the degree that the American Medical Association constraints the number of new spots that are available in the nation's medical schools, it is
A. shifting the demand for physicians to the right. B. kinking the supply of physicians to make it vertical at the level of the constraint. C. shifting the supply of physicians to the right. D. shifting the demand for physicians to the left.