Diminishing returns - Study guides, Class notes & Summaries

normative statement an opinion that cannot be confirmed by referencing facts positive statement a statement that can be proved by referencing facts why are economic models used? theories cannot be tested in a controlled environment the basic economic problem scarcity - consumer wants are always greater than available resources opportunity cost the next best alternative foregone factors of production resources used by a firm in production list and define the factors of production lab...

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays a.) diminishing returns b.) economies of scale c.) diseconomies of scale d.) declining fixed costs correct answers b. ) economies of scale The long-run average cost curve shows A) the lowest average cost of producing every level of output in the long run. B) where the most profitable level of output occurs. C) the average cost of producing where diminishing returns are not prese...

Which of the following is a reason why a firm would experience diseconomies of scale? a. As the size of the firm increases it becomes more difficult to coordinate the operations of its manufacturing plants. b. To finance an increase in the size of its plant a firm must borrow more money or sell more shares of stock. c. As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations. d. As the size of the firm increases, it must o...

A virtual company Select one: a. uses networks to link people, assets, and ideas. b. uses Internet technology to maintain a virtual storefront. c. uses Internet technology to maintain a networked community of users. d. provides entirely Internet-driven services, or virtual products. e. is limited by traditional organizational boundaries. correct answers a. uses networks to link people, assets, and ideas. Which of the following is not a major feature of organizations that impacts the use...

Law of diminishing returns correct answersLaw of diminishing returns - used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested. Fixed costs correct answersbusiness expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as interest or rents being paid per month, and are often referred to as overhead costs. Variable costs correct answerscorporate expen...

DECA Marketing Test Questions and Answers All Correct What distribution method is best for a manufacturer to use when the product is complex and is difficult to install and repair? - Answer-Exclusive distribution involves selling a product through just one middleman in a geographic area and allows the manufacturer to maintain tight control over the product. This method is often used when the products are technical in nature and require specialized knowledge to install and repair. Intensiv...

PYC3704-exam-prep - Assignments questions and answers Psychological Research (University of South Africa) lOMoARcPSD| PYC3704 – Psychological Research Topic 1 Inferential Statistics – concerned with inferring numerical properties of statistical populations from sample data Theory:  Accounts for facts and suggest how they are related to each other. A framework of ideas that provides an explanation of something  The theory – if true – implies what we should observe under...

Sport Finance Exam 1 Questions And Answers (Verified And Updated) what is economics? - answer- the study of how people choose to allocate their scare resources - what and how choices are made - how the market system functions inflation - answerall costs of goods and services increase demand-pull inflation - answerincomes increase but supply remains constant cost-push inflation - answerproduction costs increase therefore costs increase recession - answer- slowdown in economic activity -...

Sport Finance Exam 1 Questions And Answers (Verified And Updated) what is economics? - answer- the study of how people choose to allocate their scare resources - what and how choices are made - how the market system functions inflation - answerall costs of goods and services increase demand-pull inflation - answerincomes increase but supply remains constant cost-push inflation - answerproduction costs increase therefore costs increase recession - answer- slowdown in economic activity -...

Liquidity correct answers the ease with which an asset can be converted into the economy's medium of exchange Commodity Money correct answers money that takes the form of a commodity WITH intrinsic value (has value even if it were not used as money) - ex: gold M1 = correct answers - currency - demand deposits - traveler's checks - other checkable deposits M2 = correct answers - everything in M1 - savings deposits - small time deposits - money market mutual funds - a few minor ...