At the point where marginal cost equals average total cost, average total cost will be
A. decreasing.
B. increasing.
C. at its maximum.
D. at its minimum.
Answer: D
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In the above figure, the second ton of wheat would be produced even though the producer surplus on it is zero if the price per ton of wheat was
A) $25. B) $50. C) $75. D) $100.
If a large hardware chain offers a ten percent discount to those currently serving in the military and veterans, this is an example of ________ and is ________.
A) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly B) conditional sales; always illegal per se C) price discrimination; always illegal per se D) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly
As president and CEO of MegaWorld industries, you must decide on some very risky alternative investments:
Project Profit if Successful Probability of Success Loss if Failure Probability of Failure A $10 million .5 -$6 million .5 B $50 million .2 -$4 million .8 C $90 million .1 -$10 million .9 D $20 million .8 -$50 million .2 E $15 million .4 $0 .6 The highest expected return belongs to investment A) A. B) B. C) C. D) D.
Explain the concept of scale economies. Explain the difference between internal and external scale economies. What pattern of trade do we expect to see in industries with substantial external scale economies?
What will be an ideal response?