As the firm in the diagram expands from plant size #3 to plant size #5, it experiences:
A. increasing returns.
B. economies of scale.
C. diseconomies of scale.
D. constant costs.
C. diseconomies of scale.
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An illiquid asset is one that is _______ but _______.
A. worth a lot in the future; can be sold today at its expected future price B. worth a lot in the future; can only be sold today at a low price C. worth a lot right now; not worth that much in the future, when it can be sold. D. worth a lot right now; cannot be sold until the future, when its value will be higher
Which of the following changes to the market in the graph shown could cause the price floor to become non-binding?
A. Demand could decrease, and shift to the left.
B. Supply could increase, and shift to the left.
C. Supply could increase, and shift to the right.
D. Supply could decrease, and shift to the left.