17. The merger between two general merchandise stores, Sears and Kmart, each of which carried some specialty items, most likely produced:a.both economies of scope and economies of scale.18. An isocost line is a line that represents combinations of:a.factors of production that cost the same amount.19.According to the text, globalization has led to greater U.S. specialization in:a.Marketing20. Which of the following provides the best explanation for diseconomies of scale?a.Loss of team spirit21. Which of the following is most likelyan example of constant returns to scale?a.Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant.22. Constant returns to scale are associated with a:a.horizontal long-run average cost curve.23. To manufacture 1,000 pairs of shoes in a week, a firm must use at least 1,500 workers and 5machines or 100 machines and 150 workers. Which method can be technically efficient?a.Both24.The graph shown exhibits diseconomies of scale:a.In region C25. To manufacture 1,000 pairs of shoes in a week, a firm can use 1,500 workers and 50 machines or 100 machines and 2,000 workers. Which method is more technically efficient?a.1,500 workers and 50 machines26. Refer to the graph shown. The graph exhibits economies of scale:a.In region A27. Refer to the graph shown. A firm planning to produce 1,500 units of output would choose the scale of operation represented by:a.SATC-4
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28. Isoquants slope downward because:a.as less of one input is used, more of another must be used if output is to remain constant.29. Given that there are significant economies of scale involved in making flat screen television sets, the cost of manufacturing a flat screen television set most likely will:a.Fal as the industry matures30.Refer to the graph shown. A firm can produce the same amount of output at points:a.A and CChapter 131.Refer to the graph shown. To maximize profit, this perfectly competitive firm should produce:a.50 units of output2.Suppose a perfectly competitive firm can increase its profits by increasing its output. Then it must true that the firm's:a.Price exceeds its marginal cost3.To maximize profits, a perfectly competitive firm should do all the following except:a.Produce until per-unit profits are maximized4.Each firm in perfect competition:a.Sets quantity based on market price5.Refer to the graph shown, which depicts a perfectly competitive firm. When the industry is in long-run competitive equilibrium:a.The firm will produce 100 units of output6.Suppose there are 50 firms in a perfectly competitive market and each maximizes profit at 50units of output when market price is $15.00 per unit. One of the points on the market supply curve must be at:a.price = $15 and quantity supplied = 2,500.7.Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $8 and the firm maximizes profit:
a.the firm will earn economic profits of more than $330 per day.
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