When long-run average cost increases as output increases there are
A) economies of scale.
B) diseconomies of scale.
C) constant returns to scale.
D) none of the above.
B
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Total revenue decreases as the price of a good increases, if the demand for the good is
A. unitary elastic. B. elastic. C. inelastic. D. perfectly elastic.
Which of the following is true regarding a normative statement?
i. It uses the ceteris paribus assumption. ii. It is a value judgment. iii. It accounts for opportunity costs. A) i and iii B) ii and iii C) i only D) ii only E) i, ii, and iii
Describe three features of monopolistic competition that differentiate it from monopoly
What will be an ideal response?
A lower level of income causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase