At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This implies that:
A) there are neither economies nor diseconomies of scale.
B) there are economies of scale.
C) there are diseconomies of scale.
D) the cost-output elasticity is greater than one.
B
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Each point along a nation's production possibilities frontier represents efficient use of all resources
a. True b. False
Some economists believe that high concentration within industries is _________, and we should __________
a. c, d, and e b. terrible; deregulate the industries c. beneficial; encourage it d. inevitable; learn to live with it e. not inevitable; break up monopolies
Which of the following statements is correct?
A. Limited access to the health care system is a major cause of rising health care costs. B. Rising health care costs are a major cause of limited access to the health care system. C. Rising health care costs have forced employers to raise real wages above labor productivity. D. The tax subsidy that government provides for health care causes health care to be underconsumed.
Marvin's Metal Company produces screws that it sells to Ford, which uses the screws as a component of its cars. In the national income accounts, the screws are classified as
A. final goods. B. capital goods. C. inventory. D. intermediate goods.