If economies of scale are present, a firm can enhance its profits by
a. operating at any larger scale.
b. operating at any larger scale up to the optimal scale.
c. operating beyond the optimal scale.
d. operating at a lower scale.
b. operating at any larger scale up to the optimal scale.
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The real wage is the:
A. the ratio of wage of unskilled workers to the wage of skilled workers. B. marginal product of labor. C. supply of labor. D. price of labor.
When the U.S. dollar depreciates against the yen, the yen becomes ________ expensive and the U.S. exchange rate ________
A) more; rises B) less; rises C) more; falls D) less; falls
One factor which did not influence the levels of real output and employment in the classical system was the
a. stock of capital. b. level of technology. c. the price level. d. size of the labor force.
Financial capital by itself is not a factor of production; instead it is only a paper claim on economic capital
a. True b. False Indicate whether the statement is true or false