If producing more output increases average cost then
A) there are diseconomies of scale.
B) there are economies of scope.
C) there are diseconomies of scope.
D) there are no economies of scale.
A
You might also like to view...
If price is between AVC and ATC, the best and most practical thing for a perfectly competitive firm to do is
A) raise prices. B) lower prices to gain revenue from extra volume. C) shut down immediately, but not liquidate the business. D) shut down immediately and liquidate the business. E) continue operating, but plan to go out of business.
Which one of the following could account for an increase in the market clearing price of iPads?
A) a decrease in demand for iPads B) an increase in supply of iPads C) an increase in supply along with a decrease in demand D) an increase in demand along with a decrease in supply
If a country begins to import more of a commodity, one can normally expect the price of the commodity to
a. remain unchanged in that nation. b. rise and then fall below where it was originally. c. rise in that nation. d. drop in that nation.
In reaction to the terrorist attacks of September 11, 2001, the Federal Reserve moved to lower interest rates. This was intended to
A. increase aggregate demand. B. decrease aggregate supply. C. increase aggregate supply. D. decrease aggregate demand.