Suppose a firm doubles its employment of all inputs in the long run. If this action more than doubles the amount of output produced, then this firm is experiencing
a. increasing returns to scale.
b. diminishing marginal returns.
c. technological progress.
d. positive marginal revenue.
a. increasing returns to scale.
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A decrease in efficiency would shift the long-run aggregate supply curve:
A) rightward. B) leftward. C) no shift. D) none of the above.
A group price discriminator sells its product in Florida for three times the price it sets in New York. Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2
0, the demand in Florida A) has an elasticity of -6.0. B) is more price elastic than the demand in New York. C) has an elasticity of -1.2. D) has an elasticity of -0.67.
The expected-profit-maximization rule sets ________ equal to ________ and is an ________
A) marginal revenue; expected marginal cost; operational guideline B) expected marginal revenue; expected marginal cost; operational guideline C) expected marginal revenue; marginal cost; operational guideline D) marginal revenue; marginal cost; easily obtainable goal
When the price of yen in terms of dollars increases, Honda automobiles from Japan become cheaper to U.S. residents.
Answer the following statement true (T) or false (F)