Suppose There Are Economies of Scale in the Production of a Specialized

question 145

True/False

Suppose there are economies of scale in the production of a specialized memory chip that is used in manufacturing microwaves.This suggests that the microwave industry is a decreasing-cost industry.

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Definitions:

Expansionary Monetary Policy

A strategy employed by central banks to increase the money supply and decrease interest rates to stimulate economic growth.

Workers

Individuals who perform tasks or services for wages or salary in various types of employment or labor.

Aggregate Supply Curve

Represents the total quantity of goods and services that producers in an economy are willing and able to supply at different price levels.

Potential Output

The maximum level of economic productivity that can be maintained in the long run without causing inflation to rise.