The ABC Company manufactures routers that are used to provide high-speed Internet service. ABC sells an average of 1,000 routers each month, but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month
Therefore
A) ABC will soon go out of business.
B) to reach minimum efficient scale ABC would have to sell at least 3,000 routers each month.
C) ABC is experiencing diminishing returns.
D) ABC is experiencing diseconomies of scale.
B
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One effect of a minimum wage in the market for low-skilled labor is
A) a shortage of low-skilled labor. B) a surplus of low-skilled labor. C) no effect in the market for low-skilled labor. D) an increase in demand for low-skilled labor.
From the early 1980's through the 1990's, the nominal interest rate
a. fell because the Fed got inflation under control. b. fell because the Fed let inflation get out of control. c. rose because the Fed got inflation under control. d. rose because the Fed let inflation get out of control.