Per Capita Output Would Be Certain to Increase If

question 43

Multiple Choice

Per capita output would be certain to increase if:

• A)both real output and population increase.
• B)both real output and population decrease.
• C)real output increases and population decreases.
• D)real output decreases and population increases.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for all possible adjustments, including changes in industry size.

Natural Monopoly

A market structure where a single firm can produce the entire market supply of a particular good or service at a lower cost than any potential competitor.

Network Effects

Network effects occur when the value of a product or service increases as more people use it, making it more attractive and beneficial to users.

Simultaneous Consumption

The same-time derivation of utility from some product by a large number of consumers.