The motivating force behind an increase in supply in a long-run adjustment to equilibrium is
a. lower prices
b. economic profits that are present in the short run
c. higher profit expectations among owners of firms in the industry, triggered by increased prices
d. normal profits witnessed by individuals outside the industry that trigger entry
e. the decreases in average cost that can be obtained through economies of scale
B
Economics
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When a product transformation curve is bowed outward, there are ________ in production
A) economies of scope B) economies of scale C) diseconomies of scope D) diseconomies of scale E) none of the above
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Refer to the above table. If the price of the product is $1.50, what is the marginal revenue product of the 12th worker?
A) $1035 B) $135 C) $90 D) $1.50
Economics