Use the following two statements to answer this question:
I. A growing firm's average cost of production will decline over time if output continually expands and economies of scale are present.
II. A firm's average cost of production can decline over time if learning occurs as cumulative output increases.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.
A
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The above figure shows the U.S. market for replacement cell phone batteries. When there is no international trade, the equilibrium price is ________ per battery and when there is international trade the equilibrium price is ________ per battery
A) $16; $14 B) $12; $16 C) $10; $14 D) $12; $14 E) $14; $10
What is a business cycle and what are its phases and turning points?
What will be an ideal response?