If the expected price level exceeds the actual price level in an economy, _____
a. firms increase production in the short run
b. firms decrease production in the short run
c. firms maintain production in the short run but increase prices
d. firms maintain production in the short run but decrease prices
e. firms raise prices in the short run.
b
Economics
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Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. If Rogue's average total cost decreases as the business increases plant size, then Rogue experiences
A) economies of scale. B) diseconomies of scale. C) diminishing marginal returns. D) constant returns to scale.
Economics
Explain what is meant by the term ceteris paribus. Why is this concept often used in economic models?
What will be an ideal response?
Economics