According to the theory of cost, specialization in the use of variable resources in the short-run results initially in:
a. decreasing returns and declining average and marginal costs
b. increasing returns and declining average and marginal costs
c. increasing returns and increasing average and marginal costs
d. decreasing returns and increasing average and marginal costs
e. none of the above
b
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Although the U. S. airline industry has only a relatively small number of sellers, the market is nevertheless highly competitive. The reason is that:
A. the number of buyers is very large. B. due to fierce competition, no firm has significant control over the quantity supplied. C. most airline routes are served by relatively many sellers. D. due to fierce competition, no firm has significant control over prices.
Which of the following will not lead to economic growth?
A) increased immigration B) restrictions on international trade C) introduction of faster computers D) opening all federal lands to mining