When a firm has an extremely large output, it will likely experience
A. both economies of scale and diseconomies of scale.
B. neither economies of scale nor diseconomies of scale.
C. economies of scale, but not diseconomies of scale.
D. diseconomies of scale, but not economies of scale.
A. both economies of scale and diseconomies of scale.
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When the firm is at its shutdown price
a. it has losses equal to fixed costs. b. break-even line right at bottom of MC c. shut down price is below AVC d. all of the above
The natural rate of unemployment will not change following an increase in ________ unemployment
A) frictional B) cyclical C) structural D) all of the above
If an economic model includes an assumption that there are only two nations in the world, this would be an example of
a. a critical assumption b. an implicit assumption c. a simplifying assumption d. a concrete assumption e. a detail assumption
In comparing the changes in TC and TVC associated with an additional unit of output, we find that:
A. the change in TVC is equal to MC, while the change in TC is equal to TFC. B. the change in TC exceeds the change in TVC. C. the change in TVC exceeds the change in TC. D. both TC and TVC are equal to MC.