A firm finds that it can produce several different goods at a lower average cost by using some of the same production facilities than it could if it produced each of the goods with separate production facilities. This firm is
A) gaining economies of scope.
B) gaining economies of team production.
C) gaining economies of scale.
D) incurring diseconomies of scale.
A
Economics
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A demand curve that is perfectly inelastic is
A. horizontal. B. vertical. C. at a 45 degree angle. D. parallel to the X-axis.
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Assuming constant returns to scale, the equation, Y = A(t)F(K,N) can be rewritten as
a. Y/N = A(t)ƒ(K/N). b. q = A(t)ƒ(k). c. Y/N = A(t)ƒ(K ? N). d. Both a and b e. Both b and c
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Which of the following is always TRUE for a perfectly competitive firm?
A) P = d = MR B) P = d = AVC C) MC = MR = AVC D) AVC = ATC = P
Economics