In the long run, when an increase in the quantity of output decreases average total cost, this is called:
A. constant economies to scale.
B. diseconomies of scale.
C. minimum average total cost.
D. economies of scale.
Answer: D
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Assume that it is predicted that for the years after you graduate from college, the entire economy will experience a long period of recession during which people's incomes decrease
What type of industry would be the best for you to find employment if this prediction is correct? An industry that produces a product that A) is income elastic. B) is income inelastic. C) is inferior. D) is a complement. E) none of these industries
Which components of aggregate demand together account for around 30 percent of total economic activity, as measured by GDP?
a. investment, government purchases, and net exports b. goods, services, and government purchases c. consumption, net imports, and disposable income d. consumption, net exports, and government purchases
Automatic stabilizers are defined as
A) actions taken by an act of Congress to stabilize the economy. B) policy that has no multiplier effects. C) policy that stabilizes without the need for action by the government. D) discretionary policy taken to stabilize the economy. E) actions taken by the President without Congressional consent to stabilize the economy.
If Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30, what is the profit-maximizing number of sunglasses (in hundreds) for Slick Shades to produce?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) 40
B) 80
C) 55
D) 60