218-Quiz3Ans

218-Quiz3Ans - Name: SOLUTION KEY Economics 218, Spring...

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Name: SOLUTION KEY Economics 218, Spring 2008 Section: 9:00 K. Segerson Please circle the correct answers. QUIZ 3 1. An expansion path is (a) a curve showing how an industry changes its output as relative input prices change. B a curve showing the cost-minimizing way ofproducing various output levels. (c) a curve showing how consumers increase consumption ofgoods as income increases. (d) a curve showing how the economy expands in response to technological improvements over time. 2. An increasing cost industry is an industry in which prices ofsome or all inputs to production increase as the industry A expands, yielding an upward sloping long run industry supply curve. (b) an industry where all firms have increasing returns to scale. (c) an industry where costs increase as output increases. (d) an industry where costs increase in response to government regulation. 3. If marginal cost is less than average cost, then (a) marginal cost must be decreasing. (b) marginal cost must be increasing.
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This note was uploaded on 05/04/2008 for the course ECON 218 taught by Professor Segerson during the Spring '08 term at UConn.

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218-Quiz3Ans - Name: SOLUTION KEY Economics 218, Spring...

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