As a result of a shortage,
A. Producers reduce supply.
B. Producers increase output and raise price.
C. Government purchases decrease.
D. Consumers increase demand for the product.
Answer: B
Economics
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In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are
A) constant economies of scale. B) constant returns to scale. C) diseconomies of scale. D) economies of scale. E) constant diseconomies of scale.
Economics
In a market with asymmetric information, ________
A) buyers tend to forget relevant information about the good being traded B) buyers set the price of the good being traded C) buyers and sellers have different information about the good being traded D) buyers have very low bargaining power
Economics