economics

If a firm doubles all inputs in the long run and the total output is less than doubled; this results in?

A. diminishing returns B. constant returns to scale C. increasing returns to scale D. decreasing returns to scale Correct Answer:…

4 years ago

The long-run average cost curve touches to the short-run average cost curves at the?

A. minimum points of all short-run average cost curves B. declining points of all short-run average cost curves C. minimum…

4 years ago

The equilibrium point of a firm is attained at the point where the isoquant is?

A. greater than the isocost B. less than the isocost C. tangent to the isocost D. greater than the output…

4 years ago

If all factors are variable in the long run firms; will experience?

A. decreasing returns to scale B. increasing returns to scale C. diminishing returns D. economies of scale Correct Answer: Option…

4 years ago

An important function of the price system is to?

A. ensure that producers' profits remain high B. guarantee full employment of resources C. allocate resources to most productive uses…

4 years ago

Fixing price above equilibrium will cause?

A. demand and supply to remain constant B. an increase in quantity supplied C. an increase in supply D. a…

4 years ago

The invisible hand promotes the interests of?

A. consumers B. society C. government D. producers Correct Answer: Option A - consumers Explanation The invisible hand is a…

4 years ago

The cost elasticity of supply is a useful instrument for measuring?

A. profit B. productivity C. national income D. price index Correct Answer: Option B - productivity Explanation The price/cost elasticity…

4 years ago

If quantity supplied is constant irrespective of price changes; the supply elasticity is?

A. unitary B. infinity C. fairly elastic D. perfectly inelastic Correct Answer: Option D - perfectly inelastic Explanation perfectly inelastic…

4 years ago

The supply of cocoa is influenced by?

A. seasonal conditions B. the efficacy of fertilizer used C. the demand for beverages D. the availability of close substitutes…

4 years ago