The marginal cost of a good or service
A) can be calculated from the marginal benefit of that good or service.
B) decreases as more of the good or service is produced.
C) can be derived from the production possibilities frontier.
D) graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping.
E) None of the above answers is correct.
C
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Which of the following is a reason why a firm would experience diseconomies of scale?
A) As the size of the firm increases, it must operate in other countries where differences in language, customs, and laws increase its average costs. B) To finance an increase in the size of its plant a firm must borrow more money or sell more shares of stock. C) As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations. D) As the size of the firm increases it becomes more difficult to coordinate the operations of its manufacturing plants.
Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect
A) the unemployment rate to fall. B) the unemployment rate to rise. C) no change in the unemployment rate, but a decrease in the natural rate of unemployment. D) an increase in the unemployment rate, but a decrease in the natural rate of unemployment.