If the production technology has increasing returns to scale, short run marginal cost curves must be downward sloping.
Answer the following statement true (T) or false (F)
False
Rationale: Increasing returns to scale is consistent with either increasing or diminishing marginal product of capital -- which in turn determines whether the short run marginal costs slope up or down.
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The supply of domestic assets ________
A) is insensitive to changes in the nominal exchange rate B) rises when the nominal exchange rate rises C) falls when the nominal exchange rate rises D) equals the value of exports minus the value of imports
If the price elasticity of demand is -0.8 and the firm decreases price, revenue will
a. Increase b. Decrease c. Stay constant d. become zero, they would lose all their customers
The U.S. federal debt as a percentage of GDP is currently on the rise
a. True b. False Indicate whether the statement is true or false
When the money market is in equilibrium, the bond market is in equilibrium as well
a. True b. False