Olives are used to produce olive oil. If the price of olives increases

A) the supply of olive oil decreases. B) the supply of olive oil increases.
C) the demand for olive oil decreases. D) the demand for olive oil increases.

A

Economics

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If an individual is to hold lower money balances on average, she must make more frequent trips to the bank to withdraw money. This inconvenience of reducing money holding is called:

A. a menu cost. B. a shoeleather cost. C. an inflation tax. D. seigniorage.

Economics

Show that increasing returns to scale can co-exist with diminishing marginal productivity. To do so, provide an example of a production function with IRTS and diminishing marginal returns

What will be an ideal response?

Economics