Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
a. constant.
b. falling.
c. rising.
d. none of these.
c
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If diminishing returns exist, then
A. The total cost curve will be flat. B. The total cost curve will be negatively sloped. C. Each unit produced will cost incrementally less to produce. D. Each unit produced will cost incrementally more to produce.
The payoff to an oligopolist's price cut depends on how its rivals respond.
Answer the following statement true (T) or false (F)
An indifference curve provides the set of consumption alternatives that
A) yield the same total amount of satisfaction. B) maximize the utility of the consumer. C) can be purchased for the same amount of money. D) yield the same marginal utility for the last unit consumed of each good.
The owner of a perfectly competitive firm is currently earning an economic profit of zero. This owner
A. should raise the price of the product to increase profits. B. is covering all of his fixed costs. C. will continue producing in the short-run but will shut down in the long run if profits do not increase. D. should shut down since profits of zero are not good.