When ________ scale of production leads to ________ average costs, an industry exhibits decreasing returns to scale.
A. decreased; higher
B. increased; higher
C. increased; unchanging
D. increased; lower
Answer: B
You might also like to view...
If Sam has $80.00 each week to spend on tacos and magazines, and their respective prices are $.50 per taco and $4.00 per magazine, which of the following equations represents his budget line?
A) $80.00 = $.50/Qt + $4.00/Qm B) $80.00 = Qt/Qm + $.50 /$4.00 C) $80.00 = $.50(Qm) + $4.00(Qt) D) $80.00 = $.50(Qt) + $4.00(Qm)
The side of the market that will bear a greater share of the tax burden is the side that:
A. responds more to a change in prices. B. is more inelastic. C. changes quantity by a larger percentage when the price changes by a given percentage. D. bears the statutory burden of the tax.
The “Taylor rule” for monetary policy provides the Fed with a
A. mechanical prescription for monetary policy. B. benchmark to guide policy decisions. C. time frame for discount rate changes. D. rule for changing the M1 money supply.
If two duopolists can collude successfully, then both will
A) earn greater profits than if they did not collude. B) price at marginal cost. C) price below average total cost. D) lower their economic profits.