Economies of scale are indicated by:
A. the rising segment of the average variable cost curve.
B. the declining segment of the long-run average total cost curve.
C. the difference between total revenue and total cost.
D. a rising marginal cost curve.
Answer: B
You might also like to view...
Why is a competitive market efficient?
What will be an ideal response?
Assume that in the economy real GDP grows at a constant rate. There has just been a decrease in the rate of growth of the population. This implies that the
A) rate of growth of per capita real GDP will decrease. B) rate of growth of per capita real GDP will increase. C) rate of growth of capital accumulation will decrease. D) rate of growth of capital accumulation will increase.
A government payment that supports a business or market:
a. subsidy b. supply schedule c. law of supply d. elasticity of supply e. excise tax
Refer to the normal-form game of advertising shown below.Firm AFirm B??AdvertiseDo Not Advertise?Advertise$0,$0$175,$10?Do Not Advertise$10,$175$125,$125Suppose there is a 50 percent chance that the advertising game depicted in Figure 10-17 will end next period. The collusive agreement {(not advertise, not advertise)} is:
A. unsustainable since $175 < $25. B. sustainable since $175 < $250. C. sustainable since $20 > $50. D. unsustainable since $350 > $50.