Answer:
C. The long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scale.
Explanation:
The diseconomy of scale is called the effect that occurs in the costs of a given production. These effects generate increasing costs for the company for each unit of product that is manufactured. Specifically and technically, a diseconomy of scale occurs when a percentage increase in production is less than the percentage increase in inputs.
Since the size of the grocery stores decreases, the average costs decreases. So, The long-run average cost of production is lower when there are diseconomics of scale.
Hope this helps.
Answer: Trade Industries
Explanation:
Trade industries survive as long as people and businesses can afford to trade goods and services. If entities are unable to afford consumption for a reason such as a decline in income, the trade industries will suffer.
When the economy is not healthy, income levels of people will reduce and so trade industries will suffer as opposed to a healthy economy where entities can afford goods and services which will ensure the survival of trade industries.
Answer:
Real Exchange Rate computed as German goods per U.S. goods: 2
Explanation:
Cost in the US: 0.50 dollar
Cost in Germany: 1 euro
Real Exchange Rate: German Goods / U.S. Goods
Real Exchange Rate: 1 / 0.50 = 2
The real exchange rate measures the price of foreign goods relative to the price of domestic goods.
Answer:
False. There is no legal contract without value consideration.
Explanation:
The following elements must be present to declare a contract legally binding and valid.
An offer for a good or service that is being exchanged, An acceptance of this offer, A consideration which is usually the value of the goods and services that are being exchanged.
While this transaction fulfills the offer and acceptance elements, the consideration or value specification is unfulfilled and as such there is no legally binding valid contract as the prices have not been specified before agreeing to transact.
There might not be any need be for specifying prices if there is a trade, which is both parties exchange goods but in this case there is just one party delivering goods.
Hope this helps.
