In the oil tanker industry, large companies have lower risk and are able to optimize vessel utilization. If consolidation allows companies to lower their long-run average total costs, this is an example of:
a. the opportunity costs of mergers.
b. the increase in utility of managers by being able to control larger companies.
c. the dangers of oil tankers to the environment.
d. the economies of scale in the oil tanker industry.
e. the law of diminishing returns.
d
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"Wants" as an economic concept includes
A) both material and nonmaterial desires. B) only the purchase of necessary basic goods. C) only the desire for luxury goods. D) only those goods that can be purchased with one's paycheck.
The marginal cost of a vacation in the south of France is $4,500 . The marginal benefit to Madeline of a vacation in the south of France is $4,800. a. Madeline will lose $300 if she vacations in the south of France
b. Madeline will experience a net gain of $300 if she vacations in the south of France. c. Madeline will be worse off if she vacations in the south of France. d. Madeline will enjoy a net gain of $4,800 if she vacations in the south of France.