What is the difference between "diminishing marginal returns" and "diseconomies of scale"?
A) Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.
B) Diminishing marginal returns, which applies only in the long run when all factors are variable, explains why average variable cost increases, while diseconomies of scale, which applies in the short run when at least one factor is fixed, explains why average total cost increases.
C) Diminishing marginal returns, which applies only in the short run when at least one factor is fixed, explains why marginal cost increases, while diseconomies of scale, which applies in the long run when all factors are variable, explains why average cost increases.
D) Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.
C
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Looking at the record of concentration in the United States during the last century, one finds concentration has
a. steadily increased. b. risen dramatically in the past 15 years. c. changed very little. d. fallen steadily except in wartime.
A good's nominal price is the:
A. average real price of the good. B. absolute price of the good in dollar terms. C. dollar price of the good relative to the average dollar price of all other goods and services. D. dollar price of the good relative to the real price of all other goods and services.
Which of the following is true when an economy is producing efficiently?
A. The economy is producing outside the production possibilities curve. B. Everyone in the economy is happy. C. The economy is producing on the production possibilities curve. D. The economy is getting the fewest goods and services from the available resources.
A technique for implementing industrial policies that probably worsened the effects of the 1997 crisis was
A) directed credit. B) protection from imports. C) export subsidies. D) research subsidies.