An internal economies of scale is defined as
A) an industry with costs that fall for all firms.
B) a firm with falling costs over a specific level of output.
C) a firm with falling costs over a relatively large range of output.
D) a firm with falling costs over a relatively large range of output, but definite declining profits.
C
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In the above figure, the firm is incurring an economic loss at
A) point a. B) point c. C) points b and d. D) points a, b, and d.
A decrease in the productivity of a factor of production will
A. cause a firm to move up the marginal revenue product curve. B. shift its marginal revenue product curve to the right. C. cause a firm to move down the marginal revenue product curve. D. shift its marginal revenue product curve to the left.
Government purchases include spending by federal, state, and local governments on:
A. final goods and services. B. consumer durables, nondurables, and services. C. stocks, bonds, and other financial instruments. D. capital goods, residential housing, and changes in inventories.
Can a perfectly competitive firm make an economic profit in the short run? Can it incur an economic loss?
What will be an ideal response?