If the economy is characterized by diminishing or decreasing returns to scale, then a
A) doubling of inputs will lead to a constant output.
B) doubling of inputs will lead to a constant output.
C) doubling of inputs will lead to a two-fold increase in output.
D) doubling of inputs will lead to a less than two-fold increase in output.
D
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Refer to the scenario above. In this case, a Nash equilibrium occurs if ________
A) each of them bids up to their value for the good B) Tom and Roger bid up to their value for the good while Bill and Jeff bid below their value for the good C) Tom and Jeff bid up to their value for the good while Roger and Bill bid below their value for the good D) Bill and Jeff bid up to their value for the good while Tom and Roger stop bidding at $100 and $200, respectively
Differentiate between the income effect and the substitution effect of a fall in the price of a good
What will be an ideal response?