If an industry is characterized by substantial diseconomies of scale, as a particular firm in the industry expands its production capacity we will observe:
A) a decrease in marginal costs.
B) an increase in the marginal product of labor.
C) a decrease in the total fixed costs of production.
D) an increase in the average total costs of production.
D
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Refer to Figure 11-4. The movement from E to B to D in the figure above illustrates
A) diminishing returns to capital. B) an improvement in technology. C) diminishing returns to labor. D) a decline in capital per worker.
How can a country with a fixed nominal exchange rate, such as Greece, experience a lower real exchange rate?
A) by experiencing higher inflation than its partners B) by experiencing deflation if its partners have low inflation rates C) by limiting the growth of productivity D) by increasing wages at a faster rate than inflation
A horizontal line has a slope of
a. one. b. zero. c. infinity. d. undefined.
Government intervention in agriculture usually involves
A. price supports in order to keep farm incomes high. B. price ceilings in order to keep food prices low. C. price ceilings in order to subsidize U.S. exports. D. price supports in order to keep agricultural imports low.