As output increases, AVC approaches ATC because of
A) diseconomies of scale.
B) diminishing marginal returns.
C) decreasing average fixed cost.
D) increasing marginal cost.
C
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One reason why McDonald's charges a single price for its products is that it is difficult and costly for the company to determine each individual consumer's willingness to pay
Indicate whether the statement is true or false
The infant-industry argument
a. is based on the belief that protecting industries when they are young will pay off later. b. is based on the belief that protecting industries producing goods and services for infants is necessary if a country is to have healthy children. c. has the support of most economists. d. is an argument that is advanced by advocates of free trade.
Judging from this graph, which of the following happens if supply increases and demand remains unchanged?
a. Price falls and quantity rises.
b. Price falls and quantity becomes indeterminate.
c. Price becomes indeterminate and quantity rises.
d. Price increases and quantity falls.
Specialized growth is typically the result of an increase in the ability of resources to
A. compete with imported goods. B. produce all goods. C. produce certain goods. D. produce exported goods.