A busy coffee shop hires an additional barista, enabling them to serve customers nearly twice as fast. The shop responds by hiring two more baristas. After this second round of hiring, the cost of serving each customer increases. What might explain this rise?
a. Diminishing returns of labor have set in.
b. The company is experiencing economies of scale.
c. Fixed costs are being spread over larger output.
d. Total revenues have surpassed accounting costs.
a. Diminishing returns of labor have set in.
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Which of the following is the treaty that took the participating countries from a free trade area to a common market?
A) The Treaty of Rome B) The Maastricht Treaty C) Single European Act D) Treaty on European Union
When nations trade the result would most likely be:
A. increase in total production, which can benefit every nation involved. B. decrease in total production across nations but increases it for some. C. decrease in total production across all nations but benefits every nation because they are individually more productive. D. increase in total production, which would benefit only the wealthier nation.