A firm is experiencing diseconomies of scale if:
A) costs decrease as output expands.
B) costs increase as output expands.
C) costs stay constant as output expands.
Answer: B) costs increase as output expands.
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Is it possible to express an economic model in words without diagrams?
A. No, models can only be stated in diagrams. B. No, the very definition of model requires mathematical form. C. Yes, some of the simplest models are verbal statements. D. Yes, although the best models always use diagrams. E. Uncertain, economic theory has not answered this question yet.
Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent
If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent. A) 8; 6 B) 8; 2 C) 0; 1 D) 8; 4 E) 6; 2
Refer to Figure 13-15 to answer the following questions
a. What is the profit-maximizing output level? b. What is the profit-maximizing price? c. What is the average total cost at the profit-maximizing output level? d. What area represents the firm's profit? e. At which output level are economies of scale exhausted? f. Does this graph most likely represent the long run or the short run? Why?
If $1 was equivalent to 120 Japanese yen in 2008 and 125 Japanese yen in 2010, it implies in 2010, there was:
a. a depreciation of the dollar against the yen. b. a depreciation of the yen against the dollar. c. an appreciation of the yen against the dollar. d. no change in the value of yen, but the dollar had weakened. e. no change in the value of dollar, but the yen had strengthened.