When a firm is experiencing diseconomies of scale
A) the MP curve has a negative slope.
B) the LRAC curve has a positive slope.
C) it must also experience diminishing returns to labor.
D) the MC curve has a negative slope.
Ques. 2Beta Alpha Psi is an accounting student professional organization with chapters on 279 campuses nationwide. Suppose each meeting the local chapter has 30 to spend on pizza and soda.
If pizza costs 8 and the chapter buys 3, how much money can be spent on soda? A) 6
B) 30
C) 24
D) 3
Ques. 3The table above shows the marginal costs and marginal benefits of college education. The marginal social benefit of college education at the efficient amount of enrollment is
A) 20,000 per year.
B) 16,000 per year.
C) 12,000 per year.
D) 14,000 per year.
Ques. 4Redistribution programs create a disincentive to work among
A) taxpayers only.
B) benefit recipients only.
C) both taxpayers and benefit recipients.
D) neither taxpayers nor benefit recipients.
Ques. 5Constant returns to scale means that as all inputs are increased
A) total output remains constant.
B) average total cost rises.
C) average total cost rises at the same rate as do the inputs.
D) total output increases in the same proportion as do the inputs.
Ques. 6Bananas cost about 1 a pound and ground beef costs about 3 a pound. If Jenna has 18 to spend on groceries and she only buys bananas and beef, which of the following is a possible combination of these goods that could maximize her total utility?
A) 18 lbs of bananas and 6 lbs of beef
B) 10 lbs of bananas and 8 lbs of beef
C) 8 lbs of bananas and 3 lbs of beef
D) 3 lbs of bananas and 5 lbs of beef
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