Which of the following situations depicts diseconomies of scale?
A) The average total cost of a firm increases from $50 to $55 when it increases its production from 10 units to 20 units.
B) The average total cost of a firm decreases from $50 to $40 when it increases its production from 10 units to 20 units.
C) The average total cost of a firm remains at $50 when it increases its production from 10 units to 20 units.
D) The average total cost of a firm remains at $50 when it decreases its production from 20 units to 10 units.
A
You might also like to view...
A monopsony market:
A. is a market with a single buyer. B. is a market with a single seller. C. is a market with a single input. D. is a market with a single product.
To prospective employers, an honors degree from a highly selective college is:
A. only a credible signal about a whether job applicant is intelligent and hardworking if the job requires a college degree. B. not a credible signal about whether a job applicant is intelligent and hardworking. C. a credible signal about whether a job applicant has had a job before. D. a credible signal about whether a job applicant is intelligent and hardworking.
When demand is inelastic
A. the proportional change in quantity demanded is equal to the proportional change in price. B. quantity demanded is very responsive to a change in price. C. quantity demanded is not very responsive to a change in price. D. producers react quickly to price changes.
According to Keynes, the government's role during periods when private demand is low is to stimulate aggregate demand and, by so doing, lift the economy out of recession.
Answer the following statement true (T) or false (F)