Suppose Fergie's Florist experiences ________ up to a certain point and ________ beyond that point. Its long-run average cost curve is most likely to be U-shaped.
A. diseconomies of scale; constant returns to scale
B. economies of scale; diseconomies of scale
C. constant returns to scale; economies of scale
D. diseconomies of scale; economies of scale
Answer: B
You might also like to view...
What is an outside director?
A) the CEO that is selected by the corporation's board of directors B) a member of the board of directors who does not have a direct management role in the firm C) a member of a corporate board of directors that is also a manager of the business D) a board of director chair who has been in the job for less than one year
Which of the following is NOT included in the monetary aggregate M2?
A) currency B) savings bonds C) traveler's checks D) checking deposits
Which of the following entities was blamed in part for the speculative activity leading to the crash of 1929?
(a) Large manufacturing enterprises (b) Brokers and their firms who extended loans to customers interested in buying stocks on the margin (c) The Federal Reserve System (d) New mom and pop businesses
In the above figure, the production of 75 ukuleles and 75 guitars is
A) efficient production. B) inefficient production. C) impossible production. D) full employment production.