An increase in output would result in a rise in long-run average costs when there are
A) economies of scale.
B) diseconomies to scale.
C) constant returns to scale.
D) the law of diminishing marginal product.
Answer: B
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A monopolistic competitor earns zero economic profits if ________
A) price is higher than average total cost B) price is lower than marginal cost C) price is equal to marginal cost D) price is equal to average total cost
If a curve rises and then falls, it shows a
A) maximum. B) minimum. C) linear relationship. D) constant slope relationship.
Which of the following would lead to an (eventual) increase in the labor force by shifting the labor demand curve?
a. A trend toward earlier retirement ages b. An increase in the working-age population c. A reduction in the number of guaranteed student loans d. An increase in college work-study programs e. A decrease in personal income tax rates
You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a(n)
a. luxury good. b. inferior good. c. normal good. d. complementary good.