When a firm becomes so large it is difficult to coordinate and control, it is most likely that
A) economies of scale have begun.
B) diseconomies of scale have begun.
C) average total cost begins to fall.
D) long-run average costs become negative.
E) there are increasing marginal returns to increasing the firm's plant size.
B
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In the above figure, at output levels between 5 units and 13 units
A) the firm's accounting profits are negative. B) total revenue equals total costs. C) the firm's economic profits are positive. D) the firm is breaking even.
Identify whether each of the following topics would be primarily a concern of microeconomics or macroeconomics:
a. The decision by a household to eat in rather than go out for dinner this evening. b. The unemployment rate increased from 4.5% to 4.8%. c. A decision by the Federal Reserve Bank to decrease the supply of money in the economy. d. The general level of prices increased by 5% last year. e. The price of bicycles increased by $30 last year. f. The family restaurant chain closed down after losing much of its customer base to fast-food competitors over the last few years.
For which type of organization is unlimited liability likely to be the greater problem-proprietorships or partnerships? Why?
What will be an ideal response?
Perfectly competitive firms
A. are small relative to the size of the market. B. sell homogeneous products. C. are price takers. D. All of the above are correct.