Which of the following could cause an industry to be an increasing-cost industry?
a. The development of subindustries in response to industry growth.
b. The factor-price effect.
c. Identical break-even prices across firms.
d. Substantial economies of scale in production.
b. The factor-price effect.
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If the Consumer Price Index was 102.2 in 2007 and 104.9 in 2008, we can conclude that
a. the prices of all consumer goods were higher in 2008 than in 2007 b. the prices of all consumer goods were lower in 2008 than in 2007 c. the price level fell from 2007 to 2008 d. the price level rose from 2007 to 2008 e. the base year was 2001
A headline reads "Perfect Weather Brings Record-High Coffee Harvest." This situation would lead to a(n):
A. Increase in the price and in the quantity purchased of coffee B. Decrease in the price and in the quantity purchased of coffee C. Increase in the price and a decrease in the quantity purchased of coffee D. Decrease in the price and an increase in quantity purchased of coffee