The long-run average cost of producing 19 units of output is $56, and the long-run average cost of producing 20 units is also $56. These numbers illustrate:
A. diseconomies of scale.
B. constant returns to scale.
C. decreasing marginal productivity.
D. economies of scale.
Answer: B
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The policy directive from the FOMC is carried out by
A) the presidents of the district banks. B) the presidents of commercial banks that are members of the Federal Reserve System. C) the account manager at the Federal Reserve Bank of New York. D) private dealers in the bond market.
Demand describes how much of something people:
A. are willing and able to buy at alternative prices under certain circumstances. B. want, but may not necessarily be able, to buy under certain circumstances. C. are willing and able to sell under certain circumstances. D. be able to buy, but might not want to buy under certain circumstances.
It is possible to represent three dimensions on a two-dimensional graph by using
a. a contour map. b. a razor blade. c. curved lines. d. all of the above.
A competitive market is one in which
a. there is only one seller, but there are many buyers.
b. there are many sellers and each seller has the ability to set the price of his product.
c. there are many sellers and they compete with one another in such a way that some sellers are always being forced out of the market.
d. there are so many buyers and so many sellers that each has a negligible impact on the price of the product.