In which of the following situations would the minimum efficient scale of operation provide little or no guidance regarding how many firms should serve the market to minimize production costs?
A) When the LRAC curve slopes downward over the relevant range of output.
B) When the LRAC curve hits its minimum point at a relatively low level of output and then increases and the demand for output is quite large.
C) When the LRAC curve hits its minimum point at a relatively low level of output but then remains constant as the scale of operation is increased and the demand for output is quite large.
D) When the LRAC curve initially increases and then decreases beyond some point.
C
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The circular flow shows that GDP measures
i. total income. ii. total expenditures. iii. price changes. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Which of the following is an example of a U.S. export of services?
a. a Canadian buys a Ford automobile that was produced in the United States b. a U.S. traveler buys an Irish knit sweater made in Ireland c. a British citizen buys an American Airlines ticket from London to New York d. a U.S. citizen puts money into a French money market account e. a Japanese exchange student buys a Big Mac while attending college in California