Answer Happy

Question 14 (2 points) What are economies of scale? When Short Run Average Costs decline with increases in output. When a firm's Long Run Average Cost curve is increasing throughout the range of output. When a doubling of all inputs leads to a less than doubling of output. when a firm's Long Run Average Cost curve is declining throughout the range of output. A situation where a firm has low fixed costs. Question 15 (2 points) Financial intermediaries can help to reduce the transactions costs of lending and borrowing by using expertise and economies of scale. True False Question 16 (2 points) A decrease in the reserve ratio will lead to an increase in the money multiplier. True False