If a technological advance increases a firm's labor productivity, we would expect its:
A. average total cost curve to rise.
B. average total cost curve to fall.
C. total cost curve to rise.
D. average total cost curve to be unaffected.
Answer: B
Economics
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Voluntary agreements may not be a feasible method to internalize an externality when
A) the dollar value of the externality is large. B) the externality is negative rather than positive. C) there are significant transaction costs. D) there are high taxes on the firms that cause the externalities.
Economics
What is happening at point C?
a. Consumers are preordering products.
b. Consumers have maxed out their credit.
c. Inventories are being sold off to meet demand.
d. Excess production is being stored in inventories.
Economics