When changes to a company’s output do not affect its long-term average total cost curve, that company is experiencing ______.
a. constant returns to scale
b. economies of scale
c. diseconomies of scale
d. variable returns to scale
a. constant returns to scale
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The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change
Indicate whether the statement is true or false
Lynda Carlson collects wacky colored and shaped eyeglasses. Her husband found a new multicolored pair and bought it for her. She adds it to her collection, which she now values at $950 . Before the new purchase, she valued the collection at $910 . What can we say about the marginal utility to her of the new eyeglasses and its relationship to the marginal utility of any of the eyeglasses she
already had? a. The marginal utility of the new eyeglasses is $950. b. The marginal utility of the new eyeglasses is $910. c. The marginal utility of the new eyeglasses is $990. d. The marginal utility of the new eyeglasses is $40. e. The marginal utility of the new eyeglasses is $140.