Increasing Returns Occur When

question 98

Multiple Choice

Increasing returns occur when

• A)marginal cost is increasing.
• B)marginal cost is decreasing.
• C)average total cost is falling.
• D)average variable cost is falling.
• E)marginal product is decreasing.

Analyze the impact of unanticipated inflation on creditors and debtors.

Recognize various types of unemployment (frictional, structural, cyclical).

Compute changes in the unemployment rate and interpret its implications.

Identify periods of significant economic changes post-1945.

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Definitions:

FOB Destination

A shipping term indicating that the seller is responsible for the cost of transporting goods to the buyer's designated location; ownership transfers upon delivery.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Acid-Test Ratio

A financial metric that measures a company's ability to cover its current liabilities with its most liquid assets.

Liquidity Problems

Financial challenges arising from a company's inability to convert assets to cash quickly without significant loss in value, possibly hindering its capacity to meet its short-term obligations.