When an increase in the scale of production leads to higher average costs, the industry exhibits
A. diminishing returns.
B. constant returns to scale.
C. increasing returns to scale.
D. decreasing returns to scale.
Answer: D
You might also like to view...
Monopolistically competitive firms increasing their advertising will definitely achieve which of the following?
A) shift their average total cost curve up B) shift their demand curve to the right C) increase their economic profit D) shift their demand curve to the right and shift their average total cost curve up
If $22,050 is the amount payable in two years for a $20,000 simple loan made today, the interest rate is
A) 5 percent. B) 10 percent. C) 22 percent. D) 25 percent.
If the current price level is lower than the equilibrium price level, then it must be true that total planned
A) government spending is less than total planned tax revenues. B) government spending exceeds total planned tax revenues. C) real expenditures are less than total planned production. D) real expenditures exceed total planned production.
Which of the following should not be on a list of things you should do to get an honest evaluation?
A. Have a list of creative solutions to problems that you have encountered. B. Take your manager to dinner the night before evaluations are due. C. Illustrate how your actions will improve the company next year. D. Show how your output influenced the profitability of your division.