Diseconomies of scale refers to when in the long run:
A. average total cost does not depend on the quantity of output.
B. an increase in the quantity of output increases average total cost.
C. an increase in the quantity of output decreases average total cost.
D. None of these is true.
Answer: B
You might also like to view...
Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. What is the marginal product of labor when the 5th worker is hired?
A) 72.5 car washes B) 75 car washes C) 5 car washes D) 3 car washes
Suppose the market demand elasticity is constant at -2, and there are three identical firms in the oligopolistic market. A Cournot firm's MPL = 1.2L-0.5, then the labor demand for a Cournot firm is
A) PL-0.5. B) 0.6PL-0.5. C) 0.2PL-2. D) PL-2.
A improvement in production technology will shift the
a. supply curve to the right. b. supply curve to the left. c. demand curve to the right. d. demand curve to the left.
One way to allocate the scarce good created from an effective price ceiling is to:
A. give them to the friends and family of the producers. B. offer it on a first-come, first-served basis. C. ration a certain quantity per household. D. All of these are examples of allocating using non-price methods.