The expansion of the car manufacturing industry causes an improvement in the assembly line system, thus reducing costs to each firm in that industry. This is an example of
A. an increasing-cost industry.
B. a decreasing returns to scale.
C. a decreasing-cost industry.
D. constant returns to scale.
Answer: C
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Which of the following measures is the best measure of money as a medium of exchange?
A) M1 B) M2 C) M3 D) None of the above
The imposition of price ceilings on a market often results in
a. an increase in investment in the industry. b. a persistent surplus in the market. c. an increase in expenditures in the black-market. d. lower prices being offered on the black market.
Externalities that occur in market transactions and affect parties beyond those involved in such transactions are known as _____
a. spillovers b. negative externalities c. deadweight losses d. shortages
There is general agreement among economists that the long-run time period exceeds one year
a. True b. False Indicate whether the statement is true or false