A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because of:
a. diseconomies of scale.
b. economies of scale.
c. diminishing returns to a fixed factor of production.
d. the principal agent problem is generally less severe for larger firms.
b
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Could an increase in urban bus fares eventually lead to an increase in the demand for bus service?
A) It could not do so, though it could lead to a reduction in the demand for bus service. B) It could not do so, though it would probably lead to a reduction in the quantity of bus service demanded. C) It might do so if increasing the demand for and price of downtown parking increased even more. D) It might do so by making the demand for bus service unit elastic. E) Only in cities where the demand for bus service slopes upward to the right.
Which of the following is an example of a foreign direct investment?
a. A French company buying some stocks of an American company b. An American company deciding to buy a Japanese firm c. A Chinese investor purchasing bonds issued by the United States government d. An English national deposits money in an American bank