If a firm gets so large that management of employees and other resources becomes a costly problem, it will be experiencing
A) diseconomies of scale.
B) diminishing marginal product.
C) constant returns to scale.
D) economies of scale.
Answer: A
You might also like to view...
Ceteris paribus when graphing a relationship refers to
A) letting all the variables change at once. B) changing the origin of the graph. C) holding constant all but two variables. D) rescaling the coordinates.
Assuming that firms do not collude, compare the market outcome under oligopoly with the outcome under perfect competition
What will be an ideal response?
Suppose market demand and supply are given by Qd = 300 - 4P and QS = -50 + 3P. The equilibrium price is:
A. $60. B. $50. C. $40. D. $35.
If the good in the above figure is a normal good and income rises, then the new equilibrium quantity
A) is less than 300 units. B) is 300 units. C) is more than 300 units. D) could be less than, equal to, or more than 300 units.