ECON 4720 : 2nd Midterm Spring 11
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Total (94 points): labor. the total value obtained from consuming the good or service. Identify the letter of the choice that best completes the statement or answers the question. Figure 1 increasing returns to scale, because the isoquants are convex. increasing returns to scale, because doubling inputs results in more than double the amount of output: refer to figure 1. The services are alike in every respect except that fly-owned bought its airplane a few years ago for ,000, while fly-rent rents its plane for ,000 a year. If fly-owned were to go out of business as an airline operator, it would be able to rent its plane to another airline for ,000. Export demand will be qex = 30,000 - 0. 25p. At output level q1: marginal cost is falling, average total cost is falling, average variable cost is less than average fixed cost, all of the above. (a) and (b) only, refer to figure 2.
