According to this Application, the recession of 1929 was primarily due to
A) an increase in aggregate supply resulting from European bank collapses.
B) a decrease in aggregate supply due to rising gold prices.
C) a decrease in aggregate demand resulting from decreases in government spending.
D) a decrease in aggregate demand caused by the private sector.
D
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At Nick's Bakery, the cost to make a cheese danish is $1.50 per danish. As a result of selling ten danishes, Nick experiences a producer surplus in the amount of $20 . Nick must be selling his danishes for
a. $2.00 each. b. $0.50 each. c. $3.50 each. d. $5.00 each.
"If an industry's minimum efficient scale is between 2,000 and 4,000 units of output, then a firm producing 2,000 units of output in that industry has a cost-saving advantage over another firm producing 4,000 units of output in the same industry." Do you
agree or disagree? Explain. What will be an ideal response?