A firm has increasing returns to scale if:
A. a proportional change in the use of all inputs produces a more than proportional change in output.
B. a proportional change in the use of all inputs produces a less than proportional change in output.
C. a proportional change in the use of all inputs produces the same proportional change in output.
D. an increase in capital leads to an increase in output.
A. a proportional change in the use of all inputs produces a more than proportional change in output.
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The relationship between households' planned consumption expenditures and households' level of disposable real income is called
A) the consumption function. B) the savings function. C) the investment function. D) the household aggregate demand function.
Each of the following is implied if we say that transactions costs are absent EXCEPT:
A. sellers can easily communicate their prices. B. buyers can easily locate suppliers and learn their prices. C. buyers and sellers can arrange transactions without significant obstacles. D. sellers do not charge a markup over marginal cost.