The upward-sloping part of the long-run average cost curve is explained by:
A. decreasing marginal productivity.
B. indivisible setup costs.
C. diseconomies of scale.
D. output levels that exceed the minimum efficient level of production.
Answer: C
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Write down the Fisher equation and IRP relationship for the United States and the United Kingdom. Using these relationships, how can we determine the link between interest, inflation, and exchange rates? How can a change in U.S
policy affect this link?
A lawn mower costs $500 in the US and 8188 Mexican Pesos in Mexico. The current exchange rate is 1USD=12.97MXN. At this rate,
a. The good costs more in the US b. The good costs more in Mexico c. The good costs the same across the two countries d. None of the above
Which of the following statements best describes the price, output, and profit conditions of monopoly?
a. Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long run. b. Price will always equal average variable cost in the short-run and either profits or losses may result in the long run. c. In the long run, positive economic profit will be eliminated. d. None of these.
The Condorcet paradox is a situation in which the preferences of each individual member of a group are ________, and the collective preferences of the group are ________.
A. transitive; not transitive B. not transitive; not transitive C. transitive; transitive D. not transitive; transitive