A firm can take advantage of economies of scale through
A. Investment decisions to increase capacity.
B. A production decision to increase output.
C. Investment decisions to reduce capacity.
D. A production decision to increase capacity.
Answer: A
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Refer to Figure 4-6. What is the value of the deadweight loss after the imposition of the price floor?
A) $600 B) $1,800 C) $2,700 D) $3,300
Trade-offs are:
A. associated with every decision. B. do not exist if we receive something for free. C. always result in market-failure. D. can be avoided through economic planning.
A commercial bank has $1,000,000 of outstanding demand deposits and actual reserves of $300,000 . If the required reserve ratio is 20 percent, what is the maximum amount of new loans the bank can extend?
a. zero b. $100,000 c. $300,000 d. $700,000
The discovery of coal mines in a country will cause: a. the aggregate supply curve to shift rightward
b. the aggregate supply curve to shift leftward. c. an upward movement along the aggregate supply curve. d. a downward movement along the aggregate supply curve.