Economies of scale means
a. average total cost rises as firm size and output increase
b. average total cost falls as firm size and output increase
c. small firms have a cost advantage over large firms
d. monopolistically competitive firms charge less than a monopoly
e. a monopoly makes more economic profit than a perfectly competitive firm
B
You might also like to view...
Happy Cows is a dairy farm that is currently earning $20,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm; however, the managerial diseconomies from adding the second farm cause Happy Cows current farm's economic profit to fall to $15,000. It is economically sound for Happy Cows to add the second farm if ________.
A) the second farm's economic profit is at least $4,800 B) the second farm's economic profit is at least $4,000 C) the second farm's economic profit is less than $5,000 D) the second farm's economic profit exceeds $5,000
Which of the following MOST accurately describes the federal budget between 1960 and 2007?
a. By the end of the period expenditures on health and income security were each greater than expenditures on defense. b. By the end of the period expenditures on health and income security were each lower than expenditures on defense. c. Defense, income security, and health all grew as a percentage of the federal budget. d. As a share of the federal budget expenditures on defense and health grew consistently throughout the period while expenditures on income security fell.
When the Fed buys government bonds on the open market, the money supply expands
Indicate whether the statement is true or false
H. Ross Perot's famous claim in 1992 that the North American Free Trade Agreement (NAFTA) would cause a "great sucking sound" referred to
A. a rapid increase in U.S. exports to Mexico. B. a huge increase in foreign direct investment in the United States. C. a rapid increase in the wage inequality in Mexico. D. an instant shift of jobs from the United States to the Mexico.