When a firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is __________ and the firm is experiencing __________ .
A) upward sloping; diseconomies of scale
B) downward sloping; constant returns to scale
C) downward sloping; economies of scale
D) horizontal; constant returns to scale
Answer is C. Downward sloping; economies of scale
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The president has influence on Federal Reserve policy because
a. he can veto any Fed policy. b. he appoints the board members and the chair. c. he can fire the chair. d. he can replace board members at any time.
Refer to Scenario 7.8 below to answer the question(s) that follow. SCENARIO 7.8: A swimming pool cleaning company has the following production possibilities. With one, two, three, and four workers, the company can clean 5, 12, 17, and 20 pools per day, respectively. Refer to Scenario 7.8. The marginal product of the fourth worker is
A. 2. B. 3. C. 17. D. 20.