Microeconomics

Refer to Figure 8.2. As the firm makes its long-run adjustment, which

Refer to Figure 8.2. As the firm makes its long-run adjustment, which must be true? A) It takes advantage of increasing returns to scale. B) It suffers from decreasing returns to scale. C) It takes advantage of increasing marginal product. D) It takes advantage of economies of scale. E) It takes advantage of diseconomies of […]

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Date: September 9th, 2020

Suppose Bob owns two factories that are located several hundred miles

Suppose Bob owns two factories that are located several hundred miles apart. Bob decides to manage one of the plants himself, and he hires another person to manage the second plant. For purposes of operating the second plant, who is the agent and who is principal? A) Bob is the agent and the manager is […]

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Date: September 9th, 2020