Author Question: The cost-output elasticity equals 1.4. This implies that: A) there are neither economies nor ... (Read 46 times)

lb_gilbert · **on:** Jul 1, 2018

The cost-output elasticity equals 1.4. This implies that:

A) there are neither economies nor diseconomies of scale.
B) there are economies of scale.
C) there are diseconomies of scale.
D) marginal cost is less than average cost.

Question 2

From 1970 to 2010, the real price of eggs decreased and the total annual consumption of eggs decreased.

Which of the following would cause an unambiguous decrease in the real price of eggs and an unambiguous decrease in the quantity of eggs consumed? A) A shift to the right in the supply curve for eggs and a shift to the right in the demand curve for eggs.
B) A shift to the left in the supply curve for eggs and a shift to the right in the demand curve for eggs.
C) A shift to the left in the supply curve for eggs and a shift to the left in the demand curve for eggs.
D) none of the above