Apple Computer has decided that it will:

1. Layoff engineers to achieve greater economies of scale
2. Experience a shift up in its long run average cost curve by improving its technology
3. Increase production by relying more on outsourcing
4. 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:

1. is maximizing satisfaction for the given expenditure.
2. could increase total satisfaction for a given expenditure by increasing the consumption of B and decreasing consumption of A
3. should only consume A
4. 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:

1. less consumer vulnerability to higher oil prices set by OPEC
2. lower sales of trucks and SUVs by U.S. manufacturers
3. fewer cars sold in the U.S. manufactured by foreign-owned producers
4. decreased production of oil in the U.S.

Economies of scope may occur if a firm:

1. exploits the benefits of learning by doing
2. hires more entrepreneurs
3. uses economic rather than accounting measures of depreciation
4. produces multiple products with the same inputs

Many U.S. economists are opposed to restrictions on trade because:

1. use of restrictions leads other countries to increase imports from the U.S.
2. free trade discourages international competition
3. national security is compromised when high technology products are imported
4. they lower total output from a global perspective