With economies of scale, a firm can continue to lower its cost per unit by increasing output
a. without limit
b. up to the minimum efficient scale
c. until the firm is meeting market demand single-handedly
d. to some point between the minimum efficient scale and the market demand curve
e. halfway to the minimum efficient scale
B
You might also like to view...
In Econland total output is $8 billion, population equals 500,000 people, and, of these, 400,000 are employed workers. Output per person in Econland equals ________ and average labor productivity equals ________.
A. $20,000; $20,000 B. $16,000; $20,000 C. $20,000; $16,000 D. $16,000; $16,000
Refer to Figure 7.1. If Angus chooses to earn the most money, he will receive a daily payoff of
A) $100. B) $350. C) $550. D) $700.
Which of the following statements is false?
A) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale. B) Anytime you have to decide which action to take you are facing an economic trade-off. C) Economics is a social science that studies the trade-offs we are forced to make because of scarcity. D) Every individual, no matter how rich or poor, is faced with making trade-offs.
An arms race is an example of a _____
a. positive externality b. inframarginal positive externality c. Coasean solution d. prisoners' dilemma