Economies of scale
A) lead to rising long-run average costs as output increases.
B) occur if output more than doubles when all inputs are doubled.
C) occur if output less than doubles when all inputs are doubled.
D) occur when management complexity brings rising average cost.
B
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Refer to the figure above. What is the loss in the market-wide consumer surplus when the price of wine changes from $9 to $18?
A) $144,000 B) $30,000 C) $57,000 D) $0
In the aggregate demand/aggregate supply model, a country's full-employment real GDP is represented by:
a. prices. b. aggregate demand. c. aggregate supply. d. an increase in the general level of prices.
A monopoly produces X at a marginal cost of $10 per unit and charges a price of $20 per unit. Determine the elasticity of demand at the profit-maximizing price of $20.
A. ?2 B. ?0.5 C. ?0.333 D. There is insufficient information to determine the monopoly's price elasticity of demand.
Intraindustry trade relies on
A) economies of scale. B) the product cycle. C) differences in factor endowments. D) monopoly pricing.