If a firm doubles all of its inputs and its output triples, it is said to be experiencing
a. diminishing marginal returns.
b. increasing marginal returns.
c. diseconomies of scale.
d. economies of scale.
e. constant average costs.
D
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If the government enacts contractionary fiscal policy, it is most likely at which of the following equilibria in the graph shown?
A. A B. B C. C D. D
Answer the following questions true (T) or false (F)
1. Productive efficiency does not hold for a profit-maximizing, monopolistically competitive firm in the long-run equilibrium because the firm operates along the diseconomies of scale region of its average total cost curve. 2. Monopolistically competitive firms achieve allocative efficiency but not productive efficiency. 3. A monopolistic competitor does not earn profits in the long run unless it can successfully differentiate its product in the minds of its consumers.
Refer to the above table. Nation "A" has a balance of trade
A) deficit of 50. B) surplus of 50. C) deficit of 10. D) surplus of 10.
A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be
a. at the minimum point of the marginal cost curve b. less than the (total) revenue-maximizing quantity c. equal to the (total) revenue-maximizing quantity d. in the unit elastic segment of the demand curve e. in the inelastic segment of the demand curve