A) because that is they only one that actually makes sense
Answer:
the average cost to reduce
Explanation:
In this situation, when The All-terrain Bike Company increases input (capital and labor) and this causes a proportional increase in output, this scenario The All-terrain Bike Company experiences is called a constant returns to scale which gives rise to decreased average costs.
This happens because buying larger quantity of inputs gives rise to a reduced cost of purchase because these things are being bought in bulk.
Answer:
The correct answer is option d.
Explanation:
Cartels are generally formed in oligopoly markets. In such markets there are few firms which are interdependent. So, they form cartels to enjoy monopoly power.
Though cartels are generally short lived and difficult to maintain. The reason behind this is that each firm has the incentive to deviate and produce more than their quota in order to capture more market share.
So, option d is the correct answer here.
Answer:
Since elasticity is 6.4, a positive figure,it is normal good and the fact that it is greater than one means it is elastic,hence option A is correct
Explanation:
The formula for income elasticity of demand is given as:
/(new quantity-old quantity)//(old price+new price)/2)/(New income-Old income)/(old income+new income)/2)
New income=$33,000
Old income=$31,900
New quantity =5 times
Old quantity=3 times
Hence=(5-3)/(3+5)/2)/(33500-31900)/(31900+33500)/2)
Elasticity=6.45
