In the long run a company that produces and sells laundry detergent incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units. For this range of output, the laundry detergent company exhibits
a. economies of scale.
b. constant returns to scale.
c. diseconomies of scale.
d. efficient scale.
a
You might also like to view...
A quota is
A) a government-imposed restriction on the quantity of a specific good that can be imported into a country. B) a tariff imposed on goods that are dumped into the home country. C) a tariff imposed on goods that are subsidized by their domestic governments and exported to other countries. D) a tariff based on the value of the imported good.
If 80 percent of the population receives 75 percent of the income,
a. the richest quintile receives 20 percent of the income. b. the Lorenz curve is the diagonal. c. income is not perfectly evenly distributed. d. the poorest quintile receives more than 20 percent of income. e. people in the middle quintile have the highest incomes.
According to the graph shown, what does Y on the x-axis stand for?
A. Current level of GDP B. Observed level of output C. Full employment level of output D. Future target goal for output
Economists feel that taxing nominal capital gains imposes costs on the economy due to
A. increased consumption. B. reduced consumption. C. increased investment. D. reduced investment.