Suppose there is a technology to produce Grendels such that there are diseconomies of scale after the first unit is produced. There are both fixed (a physical plant called a lair) and variable (food that grows in lairs) costs of production. Which statement is true?
a. No Grendels will be produced.
b. Producing multiple units increases the average fixed cost.
c. There will be no more than one
firm in this industry.
d. It is cheaper to make five Grendels by buying five lairs and producing one Grendel in each lair than it is to produce five Grendels in one lair.
e. This is an impossible situation.
D
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Answer the following statement(s) true (T) or false (F)
1. A simple profit-maximizing monopoly will choose its price and quantity from the elastic portion of its demand curve. 2. Unlike perfectly competitive firms, monopolies do not produce where marginal revenue equals marginal cost, thus leading to deadweight loss. 3. In practice, many monopolists are required to earn zero economic profit. 4. If a natural monopoly charged the competitive price, it would earn a negative profit. 5. A competitive industry is a viable alternative to a natural monopoly.
Refer to Figure 21-5. "Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above
A) A to B B) C to A C) B to A D) B to C
Countries of the world differ in terms of their
A) geographic size. B) population size. C) standards of living. D) All of the above.
Adult population 200 million labor force 150 million employed persons 138.75 million Discouraged workers 10.5 million According to the accompanying labor data, the labor force participation rate is
What will be an ideal response?