Refer to the figure above. What does the region ABCPe denote?
A) Economic profit
B) Loss incurred by the producer
C) Consumer surplus
D) Deadweight loss
B
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Suppose Ford can triple its production of 150s by tripling its production facility for those trucks. This indicates the presence of:
a) the law of diminishing returns. b) minimum efficient scale. c) constant returns to scale. d) diseconomies of scale. e) economies of scale.
Which of the following does NOT shift the demand curve for broccoli?
A) an increase in the cost of fertilizer used to grow broccoli B) a warning by the U.S. Surgeon General that broccoli causes schizophrenia C) an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop D) a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year