Oil prices increased significantly in 2008. According to the Keynesian model, this increase in oil prices should have caused which of the following to occur?

A legal maximum on the price at which a good can be sold is called a price a. floor

b. subsidy. c. support. d. ceiling.

Which of the following statements is TRUE?

A) If a firm is experiencing economies of scale, diminishing marginal product has not set in yet. B) No firm would ever operate at a level of output for which it experiences diseconomies of scale. C) A firm can experience diminishing marginal product and economies of scale at the same time. D) Diseconomies of scale is a short-run concept, while economies of scale is a long-run concept.