If a product exhibits decreasing returns to scale, then the average cost of making the product will ______ as its production increases?
a. Increase.
b. Decrease.
c. Remain the same.
d. There is insufficient information provided to ANSWER the question.
a. Increase.
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What are the effects of an expansionary monetary policy on interest rates and output in an open economy with floating exchange rates?
What will be an ideal response?
If government regulations forced companies to purchase new pollution control technology, ______.
a. the supply curve would shift to the left b. the demand curve would shift to the left c. production would be increased d. equilibrium price would be lower
Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. If productivity increased such that 3000 units are now produced with the quantity of inputs still equal to 60, then per-unit production costs would:
A. decrease and aggregate supply would increase. B. increase and aggregate supply would decrease. C. remain unchanged and aggregate supply would remain unchanged. D. decrease and aggregate supply would decrease.
Refer to the above figure. The figure represents the consumption function for a consumer. The distance between A and B represents
A. the amount of autonomous saving. B. the amount of autonomous consumption. C. the amount of total consumption. D. none of these.