Economics Answers

Which of the following statements is true about the advantages gained through the division of labour?
A. It causes the marginal product of labour to increase, but it has no effect on the average product of labour.
B. It was first thought of by David Ricardo in his example of a hat factory.
C. It is an idea that has little application in the real world.
D. Its application results in both the marginal and average product of labour increasing.

Technical economies of scale are closely related to which of the following?
A. The law of diminishing returns.
B. Decreasing returns to scale.
C. Rising short-run average total cost.
D. Falling short-run marginal cost.
E. Increasing returns to scale.

20. All of the following, except one, would result in lower average cost. Which is the exception?
A. An increase in output if the firm was operating below its capacity output.
B. Building a larger plant if the firm was experiencing increasing returns to scale.
C. Down-sizing the scale of operations if the firm was experiencing diseconomies of scale.
D. Down-sizing the scale of operations if the firm was experiencing constant returns to scale.

If the beer producers could price discriminate on the basis of blood types, in order to maximize revenue, which of the following statements is correct?
A. The consumer group with the highest price elasticity of demand should be charged the highest price.
B. The consumer group with the highest price elasticity of demand should be charged the lowest price.
C. The consumer group with the lowest price elasticity of demand should be charged the lowest price.
D. The consumer group which should be charged the highest price depends upon which has the smallest marginal utility.

Derive the cost function for AT&T/Sprint post-merger for any value of x. suppose that service quality declines by one-third to s = 8 following the merger. In addition, assume that the market for long-distance telephone service remains perfectly competitive following the merger. Determine the values of x for which the DOJ will approve this merger

Continue to assume that x = 5/4, but the market for long-distance telephone service remains perfectly competitive following the merger. For what values of s will the DOJ approve this merger?

Liquor manufacturers use an advertising campaign to counter a government anti-binge-drinking campaign.

what are competitiveness of south African goods from other countries ?

Discuss the concept of liquidity trap and its implications on the conduct of monetary policy in an economy

You lend $6,000 to a friend who pays you back $6,600 the next year. Suppose that prices that year rose by 7% and the real rate of return in the stock market was 5%. Your friend says that he or she was being more than fair by giving you more than the rate of inflation as a return. What do you think?