Economies of scale occur when the long-run average cost curve slopes downward.
Answer the following statement true (T) or false (F)
True
Economies of scale are reductions in minimum average costs that come about through increases in the size (scale) of plants and equipment.
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Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________
A) become case A; become case 1 B) become case A; stay at case 2 C) stay at case B; become case 3 D) stay at case B; become case 1
"Over the past two decades, the distribution of income in the United States has become more equal." Is the previous statement or in? Briefly explain your answer
What will be an ideal response?
Michael spends $10 a month on Pez dispensers and Superman action figures. His marginal-utility-to-price ratio for the Pez dispensers is 40, while his marginal-utility-to-price ratio for Superman action figures is 47 . Explain why Michael is not maximizing his utility and how can he change his behavior to increase his utility?
If you were a UN advisor to Sri Lanka and recommended the unbalanced development strategy, you would suggest
a. from beginning to end, massive government planning, financing, and administering the development process, similar to the big-push strategy b. initial private investment because it is no real cost to the government but later rely on government's forward and backward linkages c. initial UN aid in infrastructure but otherwise leaving the development process to government planning and financing d. massive investment by the United Nations e. initial government investment in infrastructure but otherwise leaving the development process to private sector entrepreneurs