Economies of scale occur where
a. long-run average cost falls as new firms enter the industry
b. short-run average cost falls as new firms enter the industry
c. long-run average cost falls as one firm expands plant size
d. short-run average cost falls as one firm expands plant size
e. long-run average cost rises as one firm expands plant size
C
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Which of the following statements is false?
A. Perfect substitutes do not need to be employed in a one-to-one ratio by the firm. B. Perfect complements are associated with right-angled isoquants. C. Perfect substitutes are associated with linear isoquants. D. The elasticity of substitution can be positive or negative. E. The more two factors are substitutes in the firm's production function, the greater is the elasticity of substitution.
A ______ percent decrease in price of a good and a ______ percent increase in demand of another good equals a cross-price elasticity of demand of –3.
a. –6; +12 b. –9; +36 c. –6; +18 d. –9; +18
Ceteris paribus, which of the following is most likely to cause an increase in the quantity supplied of perfume?
A. An improvement in perfume-making technology. B. An increase in the price of perfume. C. An increase in the number of sellers of perfume. D. An increase in the salaries paid to perfume makers.
What is the equation for Real GDP in terms of labor? Explain the factors that go into each component
Please provide the best answer for the statement.