A firm has a total cost function of C(Q) = 50 + 10Q1/2. The firm experiences:
A. diseconomies of scale.
B. constant returns to scale.
C. economies of scale.
D. All of the statements associated with this question are correct, depending on the quantity.
Answer: C
You might also like to view...
Which of the following has the highest present value?
A) $1,000 received in 3 years if the current interest rate is 4% B) $1,500 received in 5 years if the current interest rate is 6% C) $2,000 received in 6 years if the current interest rate is 11% D) $3,000 received in 10 years if the current interest rate is 12%
When there is a recessionary gap, one is likely to see an increase in overtime work and more hours worked by part-time workers
a. True b. False Indicate whether the statement is true or false
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, if the economy opens itself to free trade, it will become a:
A. net importer. B. autarky. C. quota rent seeker. D. net exporter.
Answer the following statement(s) true (T) or false (F)
1. A country will gain from international trade whenever the world relative price differs from the autarkic relative price. 2. Large countries have more to gain from international trade than small countries do. 3. A perfectly competitive firm is one that can sell any quantity that it wants at any price it wants. 4. A competitive firm faces a downward-sloping demand for its product. 5. For a competitive firm, marginal revenue is constant and equal to the market price.