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Apple Computer has decided that it will: Layoff engineers to achieve greater economies of scale Experience a shift up in its long run average cost
Apple Computer has decided that it will:
- Layoff engineers to achieve greater economies of scale
- Experience a shift up in its long run average cost curve by improving its technology
- Increase production by relying more on outsourcing
- Reduce costs by producing computer chips in-house
If a consumer is currently consuming goods A and B so that these values of MU are obtained, then the consumer:
- is maximizing satisfaction for the given expenditure.
- could increase total satisfaction for a given expenditure by increasing the consumption of B and decreasing consumption of A
- should only consume A
- could increase total satisfaction for a given expenditure by increasing the consumption of A and decreasing consumption of B
As motor vehicles sold in the U.S. have become more fuel efficient, a result has been:
- less consumer vulnerability to higher oil prices set by OPEC
- lower sales of trucks and SUVs by U.S. manufacturers
- fewer cars sold in the U.S. manufactured by foreign-owned producers
- decreased production of oil in the U.S.
Economies of scope may occur if a firm:
- exploits the benefits of learning by doing
- hires more entrepreneurs
- uses economic rather than accounting measures of depreciation
- produces multiple products with the same inputs
Many U.S. economists are opposed to restrictions on trade because:
- use of restrictions leads other countries to increase imports from the U.S.
- free trade discourages international competition
- national security is compromised when high technology products are imported
- they lower total output from a global perspective
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