For constant returns to scale, a(n) ________ in a firm's scale of production leads to ________ average total cost.
A. increase; lower
B. decrease; no change in
C. increase; higher
D. decrease; a change in
Answer: B
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At the midpoint of a downward sloping straight-line demand curve, the demand
A) is elastic. B) is unit elastic. C) is inelastic. D) has an elasticity exactly equal to zero.
Capital is a flow of resources into the production of investment goods.
Answer the following statement true (T) or false (F)
Today's railroads are:
(a) Privately owned and regulated by competitive forces. (b) Private owned but managed by federal regulatory bodies. (c) Federally owned and managed by government regulatory bodies. (d) Federally owned but competitive.
The income approach to calculating GDP:
A. is more accurate than using the expenditure approach. B. is less accurate than using the expenditure approach. C. will generate the same answer as using the expenditure approach. D. is simpler to calculate than the expenditure approach.