Refer to the graph shown. The output range in region a is associated with:

A. constant returns to scale.
B. diseconomies of scale.
C. economies of scale.
D. increasing marginal productivity.

Answer: C

Economics

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If the market for hula-hoops is characterized by a very inelastic supply curve and a very elastic demand curve, an inward shift in the supply curve would be reflected primarily in the form of

a. higher prices. b. higher output. c. lower prices. d. lower output.

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Economists who argue that advertising enhances market efficiency suggest that celebrity advertising signals inferior product quality

a. True b. False Indicate whether the statement is true or false

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