Which of the following best explains why marginal cost eventually increases as output increases?
a. economies of scale occur
b. average cost increases
c. total cost increases
d. marginal product decreases
e. fixed cost is constant
D
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Since 1970, as a percent of GDP, M1 held has steadily decreased. Which of the following can account for this fact?
A) Real GDP has increased since 1970. B) The price level has risen since 1970. C) The nominal interest rate has steadily risen since 1970. D) The nominal interest rate has steadily fallen since 1970. E) Credit cards have become more widely available since 1970.
Ceteris paribus, if African countries experience a drought and purchase food from the United States, the currencies of the African countries should
A. Appreciate, and the dollar should depreciate. B. Depreciate, and the dollar should appreciate. C. Appreciate, and the dollar should appreciate. D. Depreciate, and the dollar should depreciate.
The change in wealth during a period equals:
A. saving - capital gains + capital losses. B. public saving + private saving - transfers. C. saving + capital gains - capital losses. D. saving - investment + capital gains - capital losses.
Which of the following statements about markets is not true?
A. Markets necessarily have a physical location. B. The two types of markets include the factor and product markets. C. Every market transaction involves an exchange of money for goods or resources or a direct exchange of goods or resources without money called barter. D. Markets have both a demand side and a supply side.