Which of the following indicates that economies of scale have been overridden by other factors?
a. A company seeking to save on architect's fees during its move to Maryland copies the same building it used in San Francisco, so now it occupies the only office in Baltimore built to withstand earthquakes.
b. The workers on the night shift at the Roadkill Diner, having no customers of their own, peel 400 potatoes, fill 300 catsup bottles, fry 100 pounds of bacon, and brew 80 quarts of coffee for the morning shift.
c. Denny's Restaurant serves potatoes with its breakfasts nationwide, but in the South you can get grits instead.
d. The Creepy Critters Summer Camp decides not to give campers a choice between hamburgers and hot dogs but makes creamed chipped beef on toast for everybody.
e. Henry Ford said that his customers could have any color car they wanted, as long as they wanted black.
C
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Which of the following would shift the supply curve for smartphones to the right?
A) an increase in the price of a substitute in production B) an increase in consumer income (assuming that all smartphones are normal goods) C) a decrease in the number of firms that produce smartphones D) a decrease in the price of an input used to produce smartphones
When the marginal utility of the first good drops lower than that of a second good, it is rational for a consumer to ______.
a. buy mostly the first good and a little of the second good b. buy mostly the second good and a little of the first good c. buy only the second good until the marginal utility equalizes d. buy only the first good until the marginal utility equalizes