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Suppose the market demand curve shifts rightward and the market price remains the same. What happens...

Suppose the market demand curve shifts rightward and the market price remains the same. What happens to consumer surplus in this market?

A.

Does not change
B.

We do not have enough information to answer this question
C.

Increases
D.

Decreases

If marginal costs are less than average costs, we know that

A.

Average costs are declining
B.

Average costs are negative
C.

Average costs are increasing
D.

Average costs are sunk

The less-than-load (LTL) freight business in the US has constant or flat average costs across all quantity levels.  What does this imply about the scale economies in this industry?

A.

Business has economies of scale
B.

Business has neither economies of scale or diseconomies of scale
C.

Business has diseconomies of scale
D.

Business has economies of scope but not economies of scale

Suppose you invest $100 today in bonds that have an annual discount rate equal to -2% per year.  At this time next year, your investment will be worth:

A.

$98
B.

$100
C.

$102
D.

$104
business   economics   
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Homework Answers

Answer #1
C.

Increases
A.

Average costs are declining
B.

Business has neither economies of scale or diseconomies of scale
A.

$98

Kindly up vote my answer

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