Increasing returns to scale result when
A) in the long-run, an increase in inputs will lead to an increase in the average products of inputs.
B) in the long run, an increase in inputs will lead to an equivalent increase in output.
C) labor becomes more skilled.
D) All of the above
A
You might also like to view...
The figure above shows the market for coffee. The ________ price that producers must be offered to get them to produce 10 million pounds of coffee per month is ________
A) maximum; $2.00 B) maximum; $3.50 C) minimum; $2.00 D) minimum; $3.50
Which type of unemployment is experienced by a person who is laid off at an office because word processing equipment and software reduce the need for typists?
a. Seasonal. b. Cyclical. c. Voluntary. d. Structural. e. Frictional.
Why might businesses decide to hold on to products to sell later when the economy is experiencing high levels of inflation?
A. Taxes will limit production. B. Prices will continue to rise. C. Cash will be in short supply. D. Income will remain constant.
Suppose Jackie is considering purchasing an asset that will have a future value of $650 in 4 years. The interest rate is 8% and the price of the asset is $500. Should Jackie buy the asset? Why or why not?
What will be an ideal response?