Related to the Economics in Practice on page 197. Which of the following represents a situation in which a school is experiencing diseconomies of scale?
A. Student enrollment decreases by 30 percent and average total cost increases by 50 percent.
B. Student enrollment decreases by 25 percent and average total cost increases by 10 percent.
C. Student enrollment decreases by 50 percent and average total cost decreases by 20 percent.
D. Student enrollment decreases by 30 percent and average total cost does not change.
Answer: C
You might also like to view...
When many sellers are involved in selling their products in a market, the market structure may be which of the following? i. perfect competition ii. monopolistic competition iii. monopoly
a. (i) only b. either (i) or (ii) c. (ii) only d. (i), (ii), or (iii)
A market system solves the
a. "what" and "how" decisions but not the "to whom." b. "what" and "to whom" decisions but not the "how." c. "how" and "to whom" decisions but not the "what." d. "what," "how," and "to whom" decisions.
According to the traditional Keynesian approach, a tax increase lowers aggregate demand because
A. taxes are part of the C + I + G + X line. B. a tax cut always results in a balanced budget. C. taxpayers anticipate a tax increase in the future. D. disposable income available to consumers decreases.
The creation of the Federal Reserve in 1913:
A. guaranteed the Federal Reserve would always act as lender of last resort. B. provided the opportunity for lender of last resort but not the guarantee that it would be used. C. eliminated bank panics in the U.S. D. was in response to the Great Depression in the U.S.