ECO 365 Final Exam (August 2015) - Assignment.pdf

2). Using 100 workers and 10 machines, a firm can produce 10,000 units ofoutput; using 250 workers and 25 machines, the firm produces 21,000 units ofoutput. These facts are best explained by:Economies of scopeDiseconomies of scaleDiminishing marginal productivityEconomies of scaleTo download the complete answer check ECO 365 Week 1 knowledge check3). Suppose that college tuition is higher this year than last and that morestudents are enrolled in college this year than last year. Based on thisinformation, we can best conclude that:despite the increase in price, quantity demanded rose due to some other factorschanging.the demand for a college education is positively sloped.the law of demand is invalid.this situation has nothing to do with the law of demand.4). A monopoly firm is different from a perfectly competitive firm in that:A monopolist’s demand curve is perfectly inelastic whereas a perfectlycompetitive firm’s demand curve is perfectly elastic.A competitive firm has a u-shaped average cost curve whereas a monopolistdoes not.A monopolist can influence market price whereas a perfectly competitive firmcannot.There are many substitutes for a monopolist’s product whereas there are nosubstitutes for a competitive firm’s product.Want help? Click to download ECO 3655). The best example of positive externality is:Alcoholic beverages